Bitcoin is currently at a critical technical juncture, and its trend can be summarized as follows: the price of Bitcoin is caught in a tug-of-war around $110,000, with a weak short-term technical posture and cautious market sentiment. However, after a significant pullback, it may create space for a subsequent rebound.
Specifically, the current trading price of Bitcoin is fluctuating around $112,000. The core battleground in the short term is the support level at $111,500. If the price breaks below this level, it may accelerate down to $109,000, or even deeper support at $107,800. The strong resistance level above is around $114,800, and Bitcoin needs to break through this level with volume to reverse the current bearish structure, with hopes of retesting $117,000.
From a technical perspective, the 4-hour chart shows that Bitcoin has formed a "bearish flag" structure, which typically indicates a risk of further downside after consolidation. Meanwhile, market sentiment appears to be quite depressed, with the fear and greed index having fallen into the "extreme fear" zone. However, historical experience shows that such extreme panic sentiment can sometimes provide accumulation opportunities for long-term investors and may indicate that a rebound is near
