Bitcoin may climb to $110K, but signals show its momentum is weakening fast.
The resistance zone between $106K and $110K could trigger a major reversal soon.
Fibonacci levels reveal areas where Bitcoin might stabilize if the price drops sharply.
Bitcoin could climb to $110,000 soon but faces a price correction, says well-known market analyst Crypto Patel. The 2-day BTC/USDT chart shows Bitcoin trading at $104,703 after a slight gain of 0.25%.
Patel highlights that key indicators suggest this rally may soon reverse, leaving traders to prepare for potential risks.
Source: Cryptopatel
Weakening Indicators Show a Possible Reversal
Crypto Patel’s analysis points to a bearish turn in two major indicators. The MACD, which tracks momentum, shows signs of weakening as the histogram fades. The blue signal line trends downward, signaling a decline in bullish energy. Patel believes this shift could mean sellers are gaining control as buying power weakens.
Additionally, the RSI (Relative Strength Index) hovers near 70, indicating overbought conditions. The RSI measures momentum and typically signals that price growth may slow when levels approach this threshold. With both indicators showing weakness, Patel suggests traders prepare for Bitcoin’s next move.
Resistance Levels Could Cap Bitcoin’s Growth
Patel also uses Elliott Wave Theory to analyze Bitcoin’s current trend. The chart shows Bitcoin moving through wave iii in a rising wedge pattern. This setup often signals that the price may struggle to move much higher.
Crypto Patel identifies the resistance zone between $106,000 and $110,000 as the point where Bitcoin may lose upward strength. If Bitcoin cannot break above this range, it may fail to maintain its rally and face strong selling pressure.
This failure would increase the chance of a price reversal, forcing traders to reassess their positions. Patel highlights this zone as a critical level that will determine Bitcoin’s near-term direction.
Fibonacci Levels Show Where Bitcoin Might Find Support
Crypto Patel’s analysis also highlights the Fibonacci retracement levels as crucial areas to monitor if Bitcoin begins a downturn. These levels provide insight into where prices may find support if a correction happens.
According to Patel’s chart, $79,503 marks the 0.5 retracement level, followed by $75,438 at 0.618 and $70,008 at the 0.786 level. Should the price drop further, $63,652 marks the complete retracement, a point that could attract significant buying interest.
These levels give traders a guide on where Bitcoin could stabilize during a correction. Crypto Patel’s forecast leaves a critical question unanswered: Will Bitcoin manage to reach $110,000, or is a sharp reversal already on the horizon?
The post Bitcoin May Hit $110K Soon but Faces a Sharp Drop appeared first on Crypto News Land.
