Bitcoin Faces Resistance at $111,000, Consolidates Near All-Time High

Bitcoin's recent price action has shown signs of losing momentum as it approaches its all-time high of $111,000. The cryptocurrency has struggled to reclaim this threshold, indicating a potential period of consolidation or corrective movement in the near future. The daily chart analysis reveals that Bitcoin's bullish rally has exhibited signs of exhaustion near this key resistance level, suggesting the formation of a double-top pattern, a classic bearish reversal signal. Currently, Bitcoin is consolidating within a critical price range, bounded by the $111,000 all-time high and a fair value gap between $103,000 and $104,000. This visible weakness in bullish momentum suggests a short-term rejection and further consolidation within this zone.

On the 4-hour timeframe, Bitcoin failed to print a new higher high above $110,000, encountering notable rejection at this resistance. This price action confirms the presence of heightened selling pressure and distribution behavior near the all-time high zone, reinforcing $111,000 as a key barrier. Bitcoin now trades between two prominent liquidity zones: one just below $105,000 and the other above $110,000. These liquidity pools are attractive targets for institutional players and could drive price volatility in the short term. As such, a range-bound movement is expected between these levels until a decisive breakout occurs, likely triggered by a liquidity sweep in either direction.

Sentiment analysis over the past 45 days shows that taker users on Binance Derivatives have persistently engaged in sell-side activity. Despite this, Bitcoin has remained range-bound between $100,000 and $110,000, while the Cumulative Volume Delta (CVD) has shown a consistent negative trend throughout the period. The CVD, which measures the net flow of buy and sell volume in real time, highlights a clear dominance of aggressive selling pressure. However, the price’s ability to hold steady, without further decline, points to a potential absorption phase, likely directed by institutional investors or large-scale players quietly accumulating. This ongoing divergence between persistent sell-side flow and stable price action suggests that Bitcoin may be forming a strong base. If the current structure holds, with continued absorption within the range, the likelihood of a bullish breakout increases, potentially setting the stage for a renewed uptrend.

Bitcoin's price has been trading around $108,000, marking a slight dip over the past 24 hours but a 1.20% increase over the past week. This price movement indicates a period of consolidation, with long-term holders maintaining their positions and profit-taking activities declining. The market sentiment has been influenced by various factors, including the recent decline in the US dollar index, which has created optimism among traders. Analysts have noted that Bitcoin has been trading within a well-defined descending channel for several weeks. This pattern suggests that the cryptocurrency could be at risk of a pullback, as the price has shown little movement despite the overall bullish sentiment. The key resistance level for BTC is currently around $103,170, and any significant movement above this level could indicate a potential breakout. However, the current market conditions suggest that a pullback is more likely, with the price potentially retracing to lower levels before resuming its upward trajectory.

The recent price action has also been influenced by institutional buying, with long-term holders dominating the market. This trend has contributed to the stability of Bitcoin's price, as institutional investors are less likely to engage in short-term trading activities. However, the overall market sentiment remains cautious, with traders closely monitoring the price movements and adjusting their positions accordingly. According to the analyst's forecast, Bitcoin could potentially reach new all-time highs in the near future, with some predictions suggesting that the price could surpass $118,000 and even reach $130,000 or $145,000 by the end of 2025. However, these predictions are based on various factors, including market sentiment, regulatory developments, and technological advancements. It is important to note that these forecasts are subject to change, and the actual price movements may differ from the predicted outcomes.