Bitcoin Hits $112,000 But Faces Resistance At $111,250

Bitcoin has recently surged to a new all-time high, reaching above $112,000, marking a significant milestone in its bull run. This price level represents a critical resistance zone, historically serving as a ceiling for price action. The recent bullish expansion has lifted Bitcoin from the value area high, pushing it into this high time frame resistance. However, the lack of sustained volume raises concerns about the durability of this move. Without confirmation through strong candle closures above resistance and sustained volume influx, the risk of rejection remains high, potentially leading to a rotation back toward the range lows near $98,270.

The current price action indicates that Bitcoin is still range-bound, oscillating between the resistance at $111,250 and the support at $98,270. This wide trading range has seen historical rejections from both extremes, resulting in full oscillations between the two levels. The recent bullish reaction from the value area high was aggressive but lacked the necessary volume to confirm a true breakout. This scenario leaves the door open for a liquidity grab, where stop orders from short sellers are triggered just before price stalls and reverses.

If Bitcoin fails to push through $111,250 with volume-backed momentum, the likelihood of a range continuation increases. This would open the probability for a rotation back toward the lower boundary of the range, near $98,270, where resting liquidity remains uncollected. Such moves are typical in high time frame consolidations, where price oscillates between known liquidity zones until a true breakout or breakdown occurs. Until a clear breakout confirms the change in structure, Bitcoin remains technically range-bound, and caution is warranted. Price is at resistance, and without bullish follow-through, the probability favors another leg down within the existing range.

In the coming price action, if Bitcoin fails to break above $111,250 with conviction and volume, a rotation lower toward $98,270 is expected. Conversely, a breakout with strong volume could trigger a new all-time high attempt. The market's sentiment and regulatory clarity, along with adoption by public companies, have buoyed the crypto market, contributing to Bitcoin's recent surge. However, the lack of sustained volume and the historical resistance at $111,250 pose significant challenges to further gains. Investors and traders should closely monitor the price action and volume to gauge the direction of Bitcoin's next move.