Bitcoin Faces Resistance Amid Weak Momentum and Low Volume

Bitcoin is struggling to hold its ground near a key resistance zone after a short-lived recovery, currently trading around $105,500. The asset is hovering near the upper boundary of an ascending trendline but faces strong resistance just below $108,000—an area that rejected the last breakout attempt. This technical ceiling is keeping traders on edge, as low trading volume and weakening momentum hint at possible volatility ahead.

If Bitcoin fails to stay above critical support levels, a correction could push it below the psychological $100,000 mark. The 50-day EMA is currently acting as dynamic support, but a daily close below it would likely trigger bearish sentiment. In that scenario, Bitcoin could slide toward the $98,000–$96,000 range, where the 100-day EMA awaits. A further breakdown could open the door to the 200-day EMA around $91,700, a level that may serve as the last line of defense for bulls.

Market indicators provide little reassurance. The Relative Strength Index (RSI) remains neutral in the mid-zone, with no signs of bullish divergence. Additionally, subdued trading volume suggests that neither buyers nor sellers are showing conviction at the current price range.

With uncertainty hanging over the market and technical signals showing cracks, traders should remain cautious. Bitcoin must reclaim and hold above $108,000 to reignite bullish momentum, but until then, the risk of a deeper correction remains firmly on the table.