The recent changes in price has shown some technical signals of the possibility of bearish movement. BTC has validated a bear flag pattern after a decline to below $116,000, indicating that further decline would be experienced when the support line is violated.
Analysts are monitoring from $110,000 to $112,000. Should Bitcoin fall below this range, the next level would be $100,000, which is 11% below its current price.
The relative strength index (RSI), which fell to 44 last week (after being 61 the week before), also confirms the idea of weakening bullish momentum. There is a lack of strong rebound, especially with regard to volume, as evidenced by Bitcoin showing a lack of direction on the shorter timeframes, including the 1-hour and 4-hour charts. Traders await a breakout of above 113,500 to indicate a potential recovery, and until that happens, the markets are cautious.