Bitcoin’s Struggle Around $110K: Weak Recovery Signals More Downside Risk

Bitcoin price action has stirred fresh debate after attempting a bounce near $109,000, sparking speculation of a push back toward $110,000. However, this recovery effort looks fragile and lacks the conviction needed for a true reversal. Technical signals continue to highlight weakness rather than strength.

Recently, Bitcoin slipped under its 50-day EMA at $113,700 and the 100-day EMA at $112,200, both now acting as strong resistance levels. The cryptocurrency is currently hovering just above the 200-day EMA around $106,200, which historically serves as a critical long-term support line for bulls. Yet, this latest bounce did not originate from the 200 EMA but appears instead to be a shallow attempt to reclaim lost ground after several days of heavy selling.

What makes this rebound appear unreliable is the lack of strong buying volume. Unlike previous recoveries from oversold conditions or robust support zones, this move lacks momentum, suggesting buyers are hesitant to step in with force. Trading activity remains muted, reinforcing concerns that any gains could be unwound quickly.

The Relative Strength Index (RSI) is sitting near 38, signaling weakness but not quite oversold levels. This leaves room for further downside if bearish sentiment re-emerges. To confirm a sustainable comeback, Bitcoin must reclaim the $112,000–$114,000 range, where broken EMAs now block the path upward. Only a decisive break above that zone would indicate the possibility of a stronger bullish reversal.

Until then, Bitcoin remains at risk of retesting $106,000 and the 200 EMA, the last significant defense for bulls. Any short-term rallies without meaningful volume are vulnerable to quick reversals. The market’s true test lies ahead: either regain critical resistance levels and rebuild confidence, or face the possibility of another leg lower.