The price of Bitcoin (BTC) has recovered 3% to $106,000 from the weekend's lows. However, the inability to decisively surpass $106,000 has raised concerns about whether BTC's price could witness a deeper correction in the coming days.

BTC/USD Price Chart – 4 Hours | Source: TradingView

Bitcoin may decline due to weakening buying momentum

According to data from Glassnode, Bitcoin investor behavior shows decreasing buying momentum, with a local peak possibly having formed.

The chart below shows a decline in buying momentum (investors buying into the uptrend), with the RSI dropping to 20. On the other hand, there is a strong increase in profit-taking (investors locking in profits) as the RSI rises to 77.

“This trend often appears near local peaks, when traders begin to take profits instead of increasing their exposure.”

Accumulated Bitcoin supply by cohort | Source: Glassnode

Meanwhile, the profitable Bitcoin supply remains high at 96%, around the price of approximately $105,000 on June 3.

Percentage of profitable/loss supply of Bitcoin | Source: CryptoQuant

A large number of profitable holders are often seen as a sign of an overheated market, which usually occurs before or coincides with corrections.

Due to these on-chain signals, Bitcoin's price is likely to decline in the coming days as investors choose to take profits.

Bitcoin faces strong resistance

From a technical perspective, Bitcoin's latest recovery has been constrained by the supply congestion area between $106,000 and the previous ATH around $109,000. When the price was rejected at this level on January 31, BTC fell 27% to $78,000, indicating that the bears are fiercely defending this area.

Bitcoin bulls need to create a decisive daily closing candle in this area to maintain the recovery.

BTC/USD Chart – 1 Day | Source: TradingView

The inability to flip $106,000 into a support level could lead to a deeper correction, with accompanying Long position liquidations potentially pulling the price back to the psychological level of $100,000.

Data from CoinGlass shows a sell wall accumulating above $106,000 in the 24-hour timeframe, reinforcing the importance of this resistance area.

Bitcoin Liquidation Chart | Source: CoinGlass



https://tapchibitcoin.io/lieu-bitcoin-co-sap-sup-do-them-lan-nua.html