- IncomeSharks notes Bitcoin’s euphoric sentiment at $111K resembles previous tops, hinting at a possible short-term peak.
- OBV indicator drops from 1.83M to 1.69M, revealing weaker buying volume despite Bitcoin’s higher highs since July.
- Bitcoin risks falling below $110K support, though a breakout above $115K could target the $120K–$125K resistance zone.
Bitcoin’s recent price action has raised questions about the strength of its ongoing uptrend, as market sentiment and technical indicators begin to diverge. According to IncomeSharks, the mood across the crypto market at the current local peak closely resembles past euphoric tops.
The analyst noted that many traders were aggressively bullish during the rally near $111,000 in October, much like the previous surge in July. However, the sharp downturn that followed liquidated numerous long positions, leaving investors caught off guard.
IncomeSharks emphasized that market tops rarely give traders time to react, adding that only a clear reclaim or new all-time high would confirm renewed bullish control.
Declining OBV Trend
While Bitcoin has continued forming higher highs, volume metrics reveal a weakening trend underneath. The On-Balance Volume (OBV) indicator has dropped from around 1.83 million in July to roughly 1.69 million, indicating reduced buying strength despite price advances.
This divergence between OBV and price movement typically indicates distribution rather than accumulation, suggesting large holders may be taking profits as price climbs. Notably, the upper blue resistance trendline linking the July and October highs now stretches toward the $127,000–$128,000 area.
The slightly ascending pattern shows that Bitcoin has attempted to push higher, but momentum is fading as trading volume declines. Analysts view this imbalance between price and volume as a potential warning that demand may be softening.
Sentiment Shifts and Key Price Levels
The sentiment change described by IncomeSharks adds further context to the technical outlook. Many traders continue to debate whether the latest high is a temporary pause or a larger market top.
However, the analyst pointed out that “everyone being too bearish” does not rule out the possibility of a top. The current setup, according to them, shows an emotional mix of hope and hesitation among participants who were either liquidated or forced to hold during the fast correction.
Key Resistance and Support Zones
Bitcoin’s next decisive levels remain clear. A sustained move below $110,000 could expose lower supports at $104,000 and $96,000. However, renewed buying interest above $112,000–$115,000 may lead to another retest of the $120,000–$125,000 region.
For now, Bitcoin stays within an uptrend but with fading volume and momentum, leaving traders focused on whether price breaks above resistance or slips toward critical support.
