Key Insights:
- Bitcoin repeatedly fails to clear $110,700 resistance, keeping downside risk toward $107,200 and $103,000 in focus.
- Heavy sell orders at $112,700 stall momentum; breakout needed to reach $114,000 and $117,000 targets.
- Binance inflows surge to record highs; previous patterns link this to potential bullish price moves.
Bitcoin is showing signs of weakness after failing to break through a key resistance level near $110,700. The price touched this area multiple times, but each attempt was followed by a pullback, showing that sellers are still active. As of now, Bitcoin is trading at $111,322, holding just below the resistance zone.
Charts from the BTC/USDT 4-hour timeframe show the asset moving within a downward channel that started forming in mid-August. Repeated rejections at the top of this channel are raising concerns about a possible move back to lower levels. Market watcher Ali pointed out that the resistance near $110,700 has been tested several times but never broken. He stated, “Multiple wicks at this level signal rejection,” suggesting the price may revisit the $107,200 or even the $103,000 range if pressure builds.
Heavy Sell Orders Around $112,700
Order book data from Coinglass shows a wall of sell orders around $112,700, forming another key barrier. Bitcoin has traded in a range between $105,000 and $114,000 since August 27, and the $112,700 zone stands out as an area where buyers have struggled to gain momentum.
According to trader Ted, this level has acted as a ceiling, slowing any upward move. He noted,
“If Bitcoin can reclaim $112,700 more upside is likely.”
A clean break above that price could allow BTC to target $114,000 and $117,000. For now, the price remains capped just under that zone, while support appears to be holding around $107,000.
Exchange Inflows Reach New Highs
Fresh data from Binance shows that Bitcoin inflows have hit the highest level on record. Historical comparisons suggest that similar spikes in the past came just before strong upward moves. According to Rekt Fencer, this pattern has been seen before each of Bitcoin’s past local bottoms. “Historically, this happens ONLY before BTC makes new highs,” he said.
While inflows often raise concerns about selling pressure, in some cases they’ve signaled that large buyers are preparing for price moves. This recent surge could be part of a larger accumulation phase, though that remains to be confirmed by price action.
Short-Term Direction Hinges on Resistance Break
Bitcoin is still stuck in a downward channel and struggling to gain strength above $110,700. Without a break above that level, the bias remains tilted to the downside. If support at $107,200 fails, the next level traders are watching is $103,000.
On the other hand, a clean move above $112,700 would mark a shift and could open the way for higher targets. For now, price movement remains stuck between resistance above and support below, with traders waiting to see which side gives way first.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/bitcoin-rejected-at-110k/