Bitcoin News Today: Bitcoin Consolidates Between $116K-$120K as RSI Divergence Raises Risk of $111K Test

Bitcoin’s price has remained in a narrow consolidation phase between $116,000 and $120,000, characterized by subdued volatility and equilibrium between buying and selling pressures. Analysts suggest this period may reflect capital shifting into altcoin markets, though a growing bearish divergence in the Relative Strength Index (RSI) signals weakening bullish momentum. This divergence raises the risk of renewed selling pressure, potentially pushing Bitcoin toward the critical $111,000 support level [1].

Technical analysis of the 4-hour chart reveals a classic bullish flag pattern, with price action printing higher highs and higher lows within an ascending trendline near $114,000. As long as this trendline holds, the consolidation is considered a healthy correction. However, a breakdown below this level could trigger a sharper decline toward $111,000, a key liquidity zone [1].

On-chain data highlights increased retail participation, evidenced by a surge in small-sized futures positions. This suggests retail traders are actively engaging in the current price range, particularly within the $116K–$120K consolidation zone. Notably, large-scale sell-side activity—often linked to institutional or whale movements—is absent. The lack of offloading by major players indicates confidence in the ongoing bullish trend, as historical patterns show similar setups preceding major upward moves [1].

While the market appears stagnant, the absence of panic among whales reinforces the view that the current phase is a consolidation rather than a trend reversal. Analysts caution that the $111,000 level remains a crucial pivot point. If this support holds, Bitcoin could eventually retest $120,000 and resume its broader uptrend. Conversely, a breakdown below $114,000 would heighten the risk of a test of the $111,000 threshold [1].

The interplay between technical indicators and on-chain activity underscores a mixed outlook. Short-term risks lean toward the downside if key supports fail, but the broader structure remains intact as long as major players do not trigger a reversal. The resolution of the current consolidation phase will likely determine the next directional move for Bitcoin, with both retail and institutional sentiment playing pivotal roles.

Source: [1] [Bitcoin Price Analysis: Is a Crash to $111K Imminent for BTC?](https://coinmarketcap.com/community/articles/6885060acd505a2fad82d4ae/)