Further, Bitcoin’s recent difficulty in breaking above its 2021 high of $111,000 points to a potential change in market behavior. The cryptocurrency is now trading within two key liquidity zones, just below the strong selling pressure located from $111,000 and above. This resistance signals that a larger consolidation or corrective move is in order. As bullish momentum starts to fizzle out, a classic bearish pattern starts to form.
Key Resistance at $111K
Bitcoin’s positive upswing movement has slowed down in recent weeks as it approached the $111,000 record high price. The price is currently consolidating inside an important region. Market is caught in between this top and a fair value gap ranging from $103,000-$104,000. The inability to break above the old high now suggests a potential double-top. This pattern is a textbook example of a bearish reversal. The clustering of increased selling pressure and distribution pattern around the ATH zone adds back $111,000 as an important ceiling.
A short-term rejection and additional consolidation within this range are to be expected. Bitcoin is currently trading between those two major liquidity zones just below $105,000 and above $110,000. For the time being, we are looking for choppy, range-bound trade between these two levels. A breakout – up or down – looks very decisive and imminent, potentially prompted by another liquidity sweep.
Market Dynamics and Institutional Influence
As bitcoin’s liquidity pools are holding attractive targets for institutional players, such behavior could continue to drive increased price volatility in the short term. Further data from Binance Derivatives indicates that taker users have been busy accumulating Bitcoin. This shift lasted the whole 45 days straight. This secondary selling pressure plays a role in making it more difficult for Bitcoin to break through the $111,000 area of resistance.
Potential for Consolidation
Bitcoin’s price has struggled to reclaim this level. This is a sign that we could be due for a bit of a consolidation or corrective move within the next handful of days. The current visible weakness of bullish momentum is indeed bullish. Furthermore, considerable selling pressure under the ATH zone shows that clinching above $111,000 will be difficult to achieve in the short term. The price action reaffirms that there was an increased distribution selling pressure near the ATH zone.
