Bitcoin is currently trading near the lower bounds of its recent price range after experiencing a setback at the $114,500 level. Market players are now focusing on whether support around $108,000 will hold as the price stabilizes within its well-established channel.

Bitcoin Maintains a Narrow Trading Band

The cryptocurrency has stayed within a sideways trading pattern, with demand emerging near $108,000 and selling pressure limiting movements at $114,500. Recently, Bitcoin hovered around $108,136 after being turned away from the upper limits.

Analyst Rekt Capital observed that the recent decline might still lead to a higher low. He stated:

“It looks like $114.5k is resistance for the moment but this current rejection has scope to develop a new Higher Low on the Daily.” (Translation: It appears that $114.5k is currently serving as a resistance point, but this rejection might pave the way for a higher low in daily trading.)

Overall, prices continue to adhere to the $108-$114.5k range.

Inverted Hammer Signals Potential Shift

An inverted hammer pattern may have formed on the weekly chart, as noted by analyst GandalfCrypto. This candle is emerging just below a gap that extends from about $110,000 to $113,000, suggesting renewed buyer interest following initial downturns.

He explained:

“If price begins filling that gap next week, it could mark a shift in momentum.”
(Translation: Should prices start to move towards closing that gap next week, it could indicate a change in market dynamics.)

A close above current levels could imply that buyers are returning; however, failing to maintain this could lead to continued sideways movement at lower levels.

GandalfCrypto
Image Source: GandalfCrypto/X

While momentum indicators are mixed on shorter timeframes, analysts like Daan Crypto Trades mention that Bitcoin’s latest endeavor to reclaim the 4-hour moving averages fell short, prompting a retreat to the daily 200MA and the $107,000 mark.

“If this wants to flip this low to mid timeframe downtrend around, it’s key to retake that 4H trend,” he remarked. (Translation: To reverse the recent downtrend effectively, reclaiming the 4-hour trend is critical.)

Moving forward, Lennaert Snyder is targeting $107,260 as a potential entry point, noting that $105,600 would also be an option if confirmed as support.

“Losing $105,600 triggers continuation shorts to below the crash wick,” he added. (Translation: If prices drop below $105,600, it could lead to further downward trends.)

Attention Turns to ETFs and Economic Indicators

On a broader scale, CryptoPotato reported that substantial Bitcoin holders are reallocating their assets into spot ETFs, allowing them access to traditional finance systems without incurring taxable events. Traders are keeping an eye on low derivatives activity and upcoming U.S. inflation data, which may introduce more volatility in the market in the near future.