Bitcoin enters the corrective phase after the recent record high, with prices consolidated with key support, indicating that on-chain data is profitable. Market sentiment is cautious and the next move will determine whether the pullback will be extended or a fresh strong eg will begin.
By Shayan
Daily Charts
The BTC failed to hold beyond the $124,000 mark, causing it to collapse from the upward channel, leading to a fix to the $110,000 support zone. This asset is currently below this level and closely aligns with the 100-day moving average, making it an important area for determining whether the recent decline is a healthy setback or a deeper pullback start.
Rejections from the top of the channel show weaker bullish momentum, indicating that sellers are gaining more control in the short term.
The RSI is 43 and it is sitting below the neutral 50 level, making it a bearish momentum confirmed to be working. If Bitcoin can’t climb above $110K, the next key support will be near the $104,000 fair value gap, followed by a $90,000 zone, both serving as major demand areas.
The advantage is that re-filling at the $110K level allows rebounds to be rebound towards a height of $117K and perhaps retests the 124K ATH, but the momentum indicator suggests that buyers will need new strength to push higher. The next few days will be critical in indicating whether BTC will stabilize or extend the fix.
4-hour chart
On the 4-hour chart, BTC is revising within the downward channel after peaking at $124,000. The assets have recently found that demand is around $108,000 and are currently testing midrange resistance of nearly $110,000.
The drawn curve highlights gradual changes in the market structure, showing how momentum shifted from a strong uptrend to a series of low and low highs. This indicates a controlled pullback rather than a sudden failure, suggesting that the market is in the cooling stage.
The RSI has also returned above 50 and is currently sitting at 56, with his bullish momentum improving in the short term. If the buyer can escape the descending channel and regain $110K, it will see a structural shift to bullish state and open the door for another attempt at 117K.
However, if the price is rejected here, the $104,000 fair value gap remains the next major support that buyers may consider actively defending.
On-Chain Analysis
Adjusted SOPR
The adjusted SOPR (ASOPR) chart shows how profits and losses from used output are working relative to Bitcoin price trends. Historically, sustained measurements above 1 indicate that investors are selling profits at bullish stages.
On this chart, ASOPR has struggled to maintain its rise during the recent revision, bringing the 30-day EMA trend down. This suggests that the pressure to earn profits is outweighing fresh influx, which is consistent with Bitcoin being pulled back from its high.
The key point is that the market appears to be in a cooling period where the holders are less willing to stay through volatility and instead realize profits. Every time an ASOPR is rejected close to one or only a single, it indicates that the meeting is on sale, rather than being expanded with new demand. Overall, this chart means that the market remains vulnerable to further corrective pressures.
