Bitcoin Faces Resistance at $111,000, Analysts Predict 2-3% Upside

Bitcoin's recent price movements have been characterized by a mix of bullish and bearish signals, with the cryptocurrency's upward momentum showing signs of weakening as it approaches the key $111,000 resistance zone. This has increased the risk of another rejection, potentially leading to a pullback. Despite this, analysts remain optimistic about Bitcoin's long-term prospects, with some predicting a modest 2-3% upside in the next 24 hours, potentially ranging between $108,500 and $110,000.

Technical analysis of Bitcoin's price chart reveals a classic Ascending Triangle pattern from 2017 to 2025, with a breakout above $80,000 expected in late 2024. The Relative Strength Index (RSI) is currently at 52.86, signaling neutral conditions. However, the market has been strongly rejected multiple times in the $108,980 to $108,085 zone, indicating that Bitcoin may face significant resistance in the near term.

Bitcoin has been trapped between $94,000 and $100,000 for over two weeks, with the sideways action potentially breaking soon. On Tuesday, Bitcoin dipped to support, but the key level to watch remains $108,000. If Bitcoin breaks through this level with volume, the next targets are $110,000 and $112,500. On the flip side, if the price fails to break through, it may fall to $97,800 and $94,500.

Analysts have also noted that Bitcoin's price action is influenced by market sentiment, with the cryptocurrency's price going up when there are more buyers than sellers. This has led to speculation that Bitcoin may be a good investment opportunity in the current market conditions. However, it is important to note that Bitcoin's price is highly volatile and subject to sudden changes, making it a risky investment for those who are not familiar with the market.

On the daily chart, Bitcoin continues to face challenges in surpassing the key $111,000 resistance level, its current all-time high, after several weeks of consolidation. Despite multiple attempts, intensified selling pressure and profit-taking at this level have repeatedly halted bullish momentum, resulting in sideways price action. Recently, the cryptocurrency dipped below the $100,000 support zone, triggering a liquidity sweep and collecting the fuel for a potential new leg up. However, the subsequent rebound has stalled around the $107,000 mark, signaling weakening bullish strength. If demand returns and buying pressure increases, a breakout above the $111,000 ATH could materialize. Otherwise, another rejection is likely, pushing the price back toward the critical $100,000 support in the coming sessions.

On the 4-hour chart, Bitcoin has been forming a bullish flag just below its all-time high, a pattern typically signaling continuation of the existing uptrend. Following a liquidity grab beneath the lower boundary of the flag near $100,000, Bitcoin rallied toward the upper boundary at $107,000. Despite this upward move, the price has entered a low-volatility phase, indicating a loss of momentum as it approaches resistance. Should a breakout occur early next week, a new all-time high is likely. Conversely, failure to hold above the current level could trigger another drop, sending the price back toward the lower end of the flag. Until then, price action remains confined, with both bulls and bears waiting for confirmation of the next directional move.

On-chain data reveals a sharp decline in Bitcoin reserves held on centralized exchanges, now at their lowest levels in several years. This ongoing outflow underscores a growing preference for self-custody and accumulation among investors, a pattern typically associated with reduced sell-side pressure and a long-term bullish outlook. A lower supply of readily available BTC on exchanges often sets the stage for potential supply-side shocks during periods of renewed demand. That said, while dwindling reserves are historically correlated with major bull runs, they should not be viewed as immediate catalysts for short-term price rallies. Market conditions and liquidity dynamics still play a vital role, and without a corresponding uptick in demand, price corrections remain a possibility. In summary, the exchange reserve trend highlights strong foundational support for Bitcoin, but near-term price action may still be subject to broader macro or technical headwinds.

In conclusion, while Bitcoin's price action has shown signs of weakness in the near term, analysts remain optimistic about its long-term prospects. The key level to watch is $108,000, with potential targets of $110,000 and $112,500 if Bitcoin breaks through this level. However, investors should be aware of the risks associated with investing in Bitcoin and should conduct their own research before making any investment decisions.