Bitcoin Faces Critical Resistance Before Bulls Regain Control

A looming technical hurdle has landed Bitcoin in precarious territory as veteran trader Peter Brandt cautions that the asset must reclaim the $117,570 level to avoid triggering a bearish reversal known as a double‐top formation. This warning comes amid growing supply pressure and heightened selling activity, marking a defining moment for market direction.

Bitcoin is grappling with the aftermath of a substantial sell‐off, attributed to a major“whale” sale of 24,000 BTC-worth an estimated $2.7 billion-which has intensified caution among traders. Brandt emphasised that such sizable supply events cannot be overlooked, stressing that market tops are often formed through supply or distribution.

Market observers note that Bitcoin's price now hovers in a seven‐week double‐top pattern, a configuration often associated with impending declines if price resistance remains unbroken. Brandt maintains a strictly neutral stance, drawing attention to the chart's technical signals rather than issuing a directional forecast.

On‐chain metrics compound the caution. The Taker Buy/Sell Ratio, a measure of buying and selling pressure, has fallen to its lowest point since May 2018-a worrying sign of sustained selling momentum. In addition, Bitcoin's ability to reclaim $117,570 will play a pivotal role in determining whether bullish momentum holds or falters.

Yet, institutional backing offers a counterbalance to technical concerns. Spot Bitcoin ETFs have attracted considerable institutional inflows, indicating that Bitcoin's role within global finance continues to strengthen. JPMorgan has also highlighted that Bitcoin appears undervalued relative to gold, estimating that fair‐value models place it approximately $16,000 higher, around $126,000, supported by decreasing volatility and growing corporate treasury holdings.

Technical signals remain mixed. While the double‐top pattern persists as a warning, some analysts underscore Bitcoin's resilience. Swissblock Technologies, for example, asserts that on‐chain indicators show no decisive bearish divergence, suggesting that the broader trend could still favour upward movement. Others, including Jacob King of WhaleWire, point to past double‐top patterns-such as those in 2017, 2019, and 2021-that preceded steep corrections, reinforcing the need for caution if support fails. Should Bitcoin break above the $117,570 threshold, some analysts suggest that $125,000 or beyond could become realistic targets.

Meanwhile, market activity has remained volatile. Bitcoin is trading in the range of approximately $109,000 to $112,000, with intraday swings reflecting persistent uncertainty. Traders are closely watching for shifts in momentum, knowing that a break above resistance could reignite bullish sentiment, while failure could deepen losses.

Amid these developments, the broader narrative treads between technical fragility and growing financial legitimacy. As Bitcoin straddles this crossroads, its next directional move may be shaped as much by whether it can muster the strength to surpass $117,570 as by the strength of institutional confidence and macroeconomic tailwinds.

Arabian Post – Crypto News Network

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