Bitcoin’s price has once again failed to break above the $108K resistance level, as the crypto market is correcting going into the new week.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
Looking at the daily chart, it is glaringly obvious that Bitcoin has not been able to close above the $108K resistance level for a significant period. After briefly trading above this threshold and setting a new record high last Monday, the bullish momentum fizzled out swiftly. The current trajectory shows Bitcoin breaking down through the $100K level, which raises concerns that we may soon see a decline toward the $92K range in the upcoming weeks.
The relative strength index (RSI) has also dipped below 50%, a signal that indicates bearish momentum. This trend not only reflects a correction that is underway but also suggests that traders should brace for potential downward pressure in the short term.
The 4-Hour Chart
Turning to the 4-hour chart, it becomes clear that the $108K resistance level has resulted in a decisive rejection of the price. Despite the initial optimism, the market has yet to revisit this resistance level, which is a concerning sign for bullish traders.
Today’s trading sees Bitcoin dropping below the $100K mark, and while the RSI indicates an oversold condition, suggesting a potential bounce back, the overall market sentiment leans towards a continued downward trend before any significant recovery can be expected.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Coinbase Premium Gap
In recent years, the adoption of Bitcoin in the United States has surged, significantly impacting the behavior of American investors. Understanding how these investors buy and sell Bitcoin is crucial, which is where the Coinbase premium index comes into play. This metric assesses the difference between Bitcoin’s price on Coinbase (BTC/USD) and Binance (BTC/USDT), shedding light on market sentiment specifically from US investors.
Recent observations show that the Coinbase premium index has been displaying negative values since the onset of 2025. This signals that American investors have been adopting a selling stance, contributing to Bitcoin’s inability to stage a rally. As this trend of selling pressure persists, it is likely that further corrections in Bitcoin’s price can be anticipated.
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Cryptocurrency charts by TradingView.
