Bitcoin has entered a corrective phase after its recent all-time high, with the price consolidating at key supports and on-chain data showing increased profit-taking. Market sentiment is cautious, and the next move will decide whether the pullback extends or a fresh bullish leg begins.
By Shayan
The Daily Chart
BTC has broken down from its rising channel after failing to hold above the $124K mark, leading to a correction toward the $110K support zone. The asset is currently hovering below this level, which also aligns closely with the 100-day moving average, making it a critical area for determining whether the recent drop is just a healthy retracement or the start of a deeper pullback.
The rejection from the top of the channel signals that bullish momentum has weakened, and sellers have taken more control in the short term.
The RSI is also at 43, sitting below the neutral 50 level, which confirms bearish momentum is in play. If Bitcoin fails to climb back above $110K, the next key support lies near the $104K fair value gap, followed by the $90K zone, both of which could act as major demand areas.
On the upside, a successful reclaim of the $110K level could allow for a rebound toward the $117K high and possibly retest the $124K ATH, though momentum indicators suggest buyers need renewed strength to push higher. The coming days will be decisive in showing whether BTC stabilizes or extends its correction further.
The 4-Hour Chart
On the 4-hour chart, BTC has been correcting inside a descending channel after reaching the $124K peak. The asset recently found demand around $108K and is now testing the mid-range resistance near $110K.
The drawn curve highlights the gradual shift in market structure, showing how momentum has transitioned from a strong uptrend to a series of lower highs and lower lows. This indicates a controlled pullback rather than a sharp breakdown, suggesting the market is in a cooling-off phase.
The RSI has also climbed back above 50, now sitting at 56, showing a short-term improvement in bullish momentum. If buyers manage to break out of the descending channel and reclaim $110K, it could confirm a structural shift back toward bullish conditions, opening the door for another attempt at $117K.
However, if the price gets rejected here, the $104K fair value gap remains the next major support to watch, where buyers may look to defend aggressively.
Onchain Analysis
Adjusted SOPR
The adjusted SOPR (aSOPR) chart shows how realized profits and losses from spent outputs have been behaving relative to Bitcoin’s price trend. Historically, sustained readings above 1 signal that investors are selling at a profit, often during bullish phases, while persistent drops below 1 point to capitulation or losses being realized.
On this chart, the aSOPR has struggled to stay elevated during the recent correction, with the 30-day EMA trending lower. This suggests that profit-taking pressure has been outweighing fresh inflows, which has coincided with Bitcoin pulling back from its highs.
The key takeaway is that the market appears to be in a cooling-off period where holders are less willing to hold through volatility and are instead realizing profits. Each time aSOPR gets rejected near or slightly above 1, it shows that rallies are being sold into rather than extended with new demand. Overall, the chart implies that the market remains vulnerable to further corrective pressure.
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Cryptocurrency charts by TradingView.
