As Bitcoin (BTC) strives to hold the $110,000 support zone, technical indicators are painting a grim picture, with the asset facing renewed selling pressure after failing to break through a key resistance area.
An outlook shared by pseudonymous cryptocurrency analyst BitBull in an X post on September 4 indicated that Bitcoin was rejected from the $114,000 resistance zone on the daily chart, a level that has now turned into a strong supply area.
The analysis highlighted how BTC attempted to rally back into the $114,000 region but was pushed lower, confirming the level as a ceiling for price action.
Currently trading around $110,600, Bitcoin remains below this resistance. Therefore, BitBull warned that unless BTC can reclaim and hold above $114,000 on the daily timeframe, any short-term bounce is likely to be a bull trap, luring traders before the market reverses downward.
After a steep decline from its recent peak above $124,000, Bitcoin’s rebound has been shallow and capped by the highlighted resistance zone. Such a setup often signals market weakness, with the inability to push higher suggesting that sellers are firmly in control.
BitBull further noted that the longer Bitcoin stays under $114,000, the higher the probability of a major correction before any sustainable reversal takes place. With immediate support near $109,000, a breakdown could open the door to sharper declines toward lower levels.
Bitcoin price analysis
By press time, Bitcoin was trading at $110,665, having made a modest decline of about 0.6% in the last 24 hours. On the weekly timeframe, however, the asset is up 2%.
At the moment, Bitcoin is showing neutrality with its relative strength index (RSI) reading at 47.05, without clear overbought or oversold conditions.
From a trend perspective, the asset’s 50-day simple moving average (SMA) sits at $115,862, notably above the current price, while the 200-day SMA is at $101,390.
This setup indicates that Bitcoin remains in a longer-term uptrend, supported by the 200-day average, but short-term weakness below the 50-day SMA reflects ongoing resistance. For bulls to regain control, reclaiming the 50-day SMA will be crucial, while a failure to hold above the 200-day SMA could expose Bitcoin to deeper downside risk.
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