Will Bulls Win or Bears Take Over?

Bitcoin faces a double-top near $108K that signals potential price reversal risks.

Bearish divergence and a lower high on the H4 chart show weakening momentum.

A breakout above $108K could reignite bullish momentum, while a drop below $102K risks further declines.

Bitcoin’s recent price movements have created a whirlwind of discussions among technical analysts, with the chart shared by prominent analyst Ridk1n providing a compelling narrative.

As of January 22, 2025, Bitcoin is trading within a range, with its daily chart showing a potential double-top formation—a classic bearish signal that could indicate a looming price correction.

The daily chart highlights Bitcoin nearing the $108,000 resistance level, which has been tested twice before, forming the infamous “double-top.” This resistance zone aligns with a potential Wyckoff distribution, suggesting a possible stall or reversal in price.

The close at $106,499 remains a factor in determining the next move. According to Ridk1n, “the wick on Wyckoff distribution” indicates that buyers failed to push beyond the resistance significantly, leaving room for a bearish outcome.

earish Divergence on the H4 Chart

Zooming into the 4-hour chart (H4), Ridk1n identified a bearish divergence followed by a lower high. This divergence, where price action forms higher highs while the RSI (Relative Strength Index trends lower, hints at weakening momentum.

The RSI’s trajectory underscores this, with a series of lower highs aligning with price rejections near $108,000. A failure to reclaim and close above this level could lead to further downside, as confirmed by the H4 structure.

Additionally, the formation of an LH suggests a reversal pattern in play. This implies that bears may have gained control, with a potential breakdown targeting levels below $102,000 in the short term.$BTC