INSUBCONTINENT EXCLUSIVE:
Key takeaways:Bitcoin shows bearish divergences on multiple time frames, signaling weak bullish momentum and a potential pullback.Some
traders anticipate a rally above $112,000, but increasing sell pressure and liquidity sweeps suggest the breakouts are traps.Bitcoin (BTC)
price rallied to $110,500 on Thursday, but the cryptocurrency is encountering a ceiling as multiple bearish divergences flash across
On the 15-minute, one-hour, and four-hour charts, technical analysts have flagged divergence signals, where the price continues to rise
while momentum indicators, such as the relative strength index trend lower
This suggests a weakening bullish drive, raising the risk of a near-term pullback.Bitcoin 15-min, 1-hour, 4-hour, 1-day bearish divergences
Source: Cointelegraph/TradingViewZooming out to the one-day chart reinforces the cautious outlook
Although BTC briefly dipped below $100,000 since then, the divergence remains intact, suggesting that underlying bearish pressure could
data, which came in hotter than expected
While the labor report initially helped push BTC toward $110,000, bulls failed to maintain that breakout
The rejection at this key psychological level may signal exhaustion at the current range highs.Interestingly, funding rates remain neutral
In an X post, Vetle Lunde of K33 Research pointed out that the perpetual futures funding rate remains flat even with BTC brushing against
This lack of aggressive long positioning shows traders may not be fully convinced of a sustained breakout, which aligns with the current
technical divergences.Bitcoin 7-day average funding rates
Source: Vetle Lunde/XRelated: Bitcoin price rallied 80% the last time BTC funding rates flipped redAs Bitcoin consolidates just below the
coiling for a $112,000 break based on futures data
beginning to reflect increased sell pressure
A cluster of high-taker sell volume appeared around the $110,000 zone, typically a sign that investors could be closing positions at
This aligns with recent behavior near previous all-time highs, where rejection zones often draw liquidity for exits.Bitcoin: Taker Sell
Source: Maartunn/XMeanwhile, trader KillaXBT pointed out that Bitcoin has been executing liquidity sweeps above resistance levels and below
supports, only to reverse swiftly
These fakeouts are often designed to flush out leveraged positions before a real directional move unfolds.Related: Bitcoin holding $109K
proves bulls control the market: Will new highs happen today?This article does not contain investment advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
