Bitcoin Faces Strong Rejection at Resistance, Eyes Key Support Amid Volatility

Bitcoin's explosive rally hit a wall just below its all-time high, signaling a possible pause in bullish momentum. After steadily climbing from the $95,000–$100,000 consolidation zone, BTC surged to test the critical $112,000 level—an area that has historically triggered either euphoric breakouts or swift reversals. This time, bearish pressure prevailed.

While the rejection dampened immediate upside hopes, Bitcoin’s medium-term outlook remains bullish. The asset still trades well above its 50-day, 100-day, and 200-day moving averages, all of which are trending upward and converging around the $106,000–$102,000 range. This zone is expected to act as a solid support base where dip buyers may return if the price continues to pull back.

On-chain indicators suggest that interest in the breakout is fading. The latest daily candle showed a spike in trading volume during the attempt, but follow-through has since declined. If liquidity continues to dry up, a deeper retracement may occur as leveraged positions unwind.

Still, Bitcoin could make another run toward the $120,000 mark if momentum revives. This level hosts several resistance clusters and may act as the next ceiling if bulls regain control. For now, investors should brace for increased volatility as the market assesses its next direction.

Although BTC didn’t break into price discovery on the first attempt, this setback is not unexpected. The rejection underscores the market's caution near critical resistance levels and suggests that more consolidation may be needed before a sustained move higher. Traders should closely monitor support zones and volume trends to gauge the strength of any upcoming reversal or continuation.