Bitcoin is currently facing challenges in maintaining momentum following a significant drop a few weeks ago. The recent price behavior shows hesitation from traders, as both bulls and bears are monitoring key support levels for possible deeper corrections. Although the overall market structure is still bullish, there are signs of weakening in short-term technicals.

Technical Analysis

The Daily Chart

On the daily chart, Bitcoin is positioned at a vital junction between an ascending trendline and the 200-day moving average, which sits near $108K. This moving average serves as a dynamic support, yet the price has dipped below the 100-day average, which is around $114K, suggesting a decrease in bullish momentum.

The RSI is low, resting around 40, and a sequence of lower highs since the record peak in September indicates a short-term downtrend. If the current support breaks decisively, sellers may drive the price toward the crucial $100K mark. Conversely, regaining momentum requires a rise above $114K with strong follow-through.

Daily Chart Source: TradingView

The 4-Hour Chart

In the 4-hour chart, Bitcoin is stuck in a narrow range between $108K and $116K, just above the rising trendline, which has been tested frequently to create a temporary floor. However, the bounces are losing strength, hinting at buyer fatigue.

The RSI on this chart appears flat, indicating a lack of clear direction. Should the price drop below the trendline, a sharp move toward the key support area around $100K is anticipated. Alternatively, moving back above $110K with good volume could restore momentum towards the $114K–$116K supply zone.

4-Hour Chart Source: TradingView

On-Chain Analysis

From an on-chain perspective, the Short-Term Holder SOPR has dipped below 1, suggesting that recent buyers are taking losses. This typically indicates a cautious market, with unwillingness among short-term holders to sell at a loss unless necessary.

Recent SOPR peaks indicate that profitability spikes have been quickly sold off, reflecting weak confidence during upswings. A reclaim and sustained hold above 1 for SOPR can prevent short-term rallies from being disrupted by sales. This highlights the importance of maintaining support zones, which are crucial battlegrounds for patient buyers against hesitant holders.

SOPR Analysis Source: CryptoQuant