Bitcoin Recovery Fatigue Sets In As Analyst Maps Critical Price Levels
Bitcoin's rebound shows signs of exhaustion as traders watch these key technical levels.
The Great Stall
Recovery momentum falters just as Bitcoin approaches crucial resistance zones. Market sentiment shifts from bullish to cautious as price action slows.
Critical Thresholds
Analysts identify specific price points that could determine Bitcoin's next major move. Break above resistance signals renewed bullish momentum, while failure to hold support suggests deeper correction ahead.
Market Psychology
Traders grow increasingly skeptical about Bitcoin's ability to sustain recent gains. The classic 'buy the dip' mentality faces its first real test since the last major rally.
Institutional investors watch from the sidelines—apparently waiting for someone else to make the first move, as usual in crypto.
Market Rebounds but Momentum Weakens
The recovery comes following what Valuermarket called “the largest single-day liquidation in crypto history” when Bitcoin plunged from above $122,000 to lows near $101,000, triggering liquidations for over 1.6 million traders. The event was linked to comments by U.S. President Donald Trump, who threatened China with new tariffs, a move that briefly rattled global markets.
However, by Sunday afternoon, the narrative had shifted, with tensions between Washington and Beijing appearing to ease after clarification that China’s new export measures were not full bans. The reassurance helped BTC jump from $112,000 to above $114,500, while ethereum (ETH) rallied 6% to nearly $4,100.
Nonetheless, market watchers like Maartunn cautioned that the rebound may be losing steam. According to him, Bitcoin’s market structure seems fragile, exhibiting a failed weekly breakout, a pattern that mirrors behavior observed in November 2021 and often signaling buyer fatigue.
Furthermore, the UTXO Realized Price Distribution (URPD) metric, which tracks the price at which units of BTC were last spent, shows distinct barriers. The expert says that a heavy supply zone between $117,500 and $120,000 is acting as formidable resistance. On the other hand, there is layered support at $95,000-$97,500, $106,000, and a critical level at $111,200.
The $110,900 mark, specifically the Short-Term Holder (STH) Realized Price, has been tested three times in the past six weeks, and while it has held so far, Maartunn warns that conviction is fading, and a break below this level could trigger further downward movement. This is also compounded by signs of early profit-taking from recent buyers.
Technical Levels Define Next Move
Other technical analysts have offered more tempered optimism. One of them, Rekt Capital, observed that bitcoin had managed a daily close beyond $114,300 and was holding above its 21-week Exponential Moving Average, a historically positive signal. He also pointed out that the asset had filled a key CME futures gap between $109,700 and $111,310 over the weekend, even though a new gap has now opened between $115,690 and $116,865, creating another potential magnetic zone for price action.
At the time of this writing, Bitcoin was trading at $115,195, marking a 3% gain in the last 24 hours. Still, it remains 8.6% below its all-time high above $126,000 set on October 6. Additionally, over seven days, it lost nearly 7% of its value, reflecting lingering volatility from the liquidation event, even as daily volume climbed above $91 billion.
