Bitcoin Faces Strong Resistance as Recovery Falters

Bitcoin’s latest recovery attempt has stalled, signaling that the post-sell-off bounce may already be exhausted. After rallying to retest the $112,000 zone, BTC once again failed to break through a crucial resistance level, leaving the market vulnerable to further declines. The rejection is significant because it occurred just below the 50-day moving average and the local resistance cluster between $114,000 and $116,000. A breakout above these levels could have given bulls short-term momentum, but the inability to sustain higher prices suggests sellers remain in control.

At the time of writing, Bitcoin is trading near $111,121, with growing risks of a deeper correction. The next major support lies at the 100-day EMA around $110,785. If this level fails, BTC could test the 200-day EMA near $104,520 — a price not seen since May. Such a drop would confirm a larger corrective phase following the strong rally earlier this summer.

Momentum indicators also point to weakness. The Relative Strength Index (RSI) is hovering at 46, slightly below neutral, reflecting a lack of buying pressure. Meanwhile, trading volumes have declined sharply compared to June and July, highlighting fading market enthusiasm and limited inflows of fresh demand.

Unless Bitcoin finds renewed buying interest, it is more likely to drift lower gradually rather than stage another sharp surge. Traders are closely watching whether BTC can defend key support levels or if the market is headed for another leg down.

With resistance firmly established and momentum indicators turning bearish, Bitcoin’s short-term outlook leans negative, making the $104,000 zone a critical line in the sand for bulls.