Bitcoin Faces Risk of Correction as Momentum Wavers

The recent progression of Bitcoin to $105,000 has raised concerns about its momentum, with a slight 0.03% increase in the last 24 hours but a 3.5% decline over the past week. Analyst Captain Faibik highlights that this static gain combined with weakening indicators suggests traders might be purchasing near the peak. The RSI has declined from around 80 to 61.88 despite the price reaching new highs, indicating diminishing buying power. Such divergences often hint at an upcoming correction, with Faibik predicting a potential dip into the $92,000–$94,000 range. Additionally, resistance around $108,000–$109,000 remains stiff, reinforced by a trendline from December 2024. The engagement in the derivatives market, with increased futures and options activity but decreased open interest, along with significant liquidations, signals caution among traders. Historically, Bitcoin's recovery in 2022 was driven by different dynamics, emphasizing that current market conditions with higher rates and institutional interest may alter typical patterns. Overall, the technical signals and market sentiment point toward a possible short-term correction, urging traders to stay alert and adjust strategies accordingly.