Bitcoin Teeters at $111K Cliff Edge - Will This Historic Support Hold Against Bearish Onslaught?

Bitcoin's bull run hits a wall as bears mount relentless pressure at the $111,000 support level.

The Failed Breakout

After flirting with unprecedented heights, BTC's momentum stalled spectacularly. The digital gold now faces its toughest test since the rally began - defending the crucial $111K floor that separates continued growth from potential correction territory.

Market analysts watch with bated breath as trading volumes surge around this psychological barrier. The same institutional money that propelled Bitcoin to record highs now appears hesitant, creating a classic standoff between bulls and bears.

Technical indicators flash warning signs while perpetual funding rates normalize - suggesting the market might be catching its breath after the explosive ascent. Yet true believers remain unfazed, viewing this consolidation as healthy digestion of recent gains.

As traditional finance pundits sharpen their 'I told you so' speeches, crypto veterans recognize this familiar dance. Sometimes the market needs to take two steps back before launching toward the next zero.

Bitcoin Tests Key Support as Momentum Fades

Currently, Bitcoin is trading around $111,300, down roughly 1% in 24 hours, after briefly dipping to an intraday low of $110,292. Technical indicators show the asset under pressure, with the 20-day and 50-day moving averages turning lower and a bearish crossover emerging on the MACD.

The Relative Strength Index (RSI) has fallen to the mid-40s, signaling cooling buying strength and the potential for further downside if support fails.

Analysts are eyeing $107,000–$110,000 as the crucial short-term demand zone. A decisive break below this area could open the path toward $100,000, while a bounce above $115,000–$123,000 WOULD be needed to restore bullish sentiment.

“Bitcoin’s structure suggests fatigue at the top, with a potential double-top formation visible around $126,000,” one market analyst noted. “A weekly close below $110K would likely trigger broader profit-taking.”

Whales Turn Cautious, Bitcoin ETF Inflows Slow

On-chain data indicates that BTC whales have increased short exposure, signaling caution among large holders.

This aligns with reports of falling ETF inflows, which declined by over $223 million this week after surging more than $2.7 billion the week before. Analysts suggest this cooldown reflects a pause in institutional demand following months of aggressive accumulation.

Meanwhile, traders are closely watching macro developments, as gold’s rally to a record $4,200 has drawn some capital away from Bitcoin’s “digital gold” narrative. Weak U.S. data and tariff-related volatility have added pressure, pushing some investors back toward traditional SAFE havens.

Analysts Warn of Rising Wedge Breakdown

Technically, Bitcoin’s weekly chart shows a rising wedge pattern, often a bearish setup. If BTC closes the week below $110,000, the structure projects a potential downside target around $74,000, representing a 34% correction.

However, long-term metrics such as hash rate and network activity remain strong, suggesting that any DEEP retracement could offer a buying opportunity for patient investors.

For now, Bitcoin’s next MOVE hinges on whether bulls can defend the $110K floor. A strong rebound from here could set the stage for another attempt toward $126K, but failure to hold support risks ushering in a much sharper correction before the next major rally begins.

Cover image from ChatGPT, BTCUSD chart on Tradingview