Bitcoin Eyes $108K Resistance: Will Bulls Win or Bears Take Over?

• Bitcoin faces a double-top near $108K that signals potential price reversal risks.  
• Bearish divergence and a lower high on the H4 chart show weakening momentum.  
• A breakout above $108K could reignite bullish momentum, while a drop below $102K risks further declines.  

Bitcoin’s recent price movements have created a whirlwind of discussions among technical analysts, with the chart shared by prominent analyst Ridk1n providing a compelling narrative. As of January 22, 2025, Bitcoin is trading within a range, with its daily chart showing a potential double-top formation—a classic bearish signal that could indicate a looming price correction.

The daily chart highlights Bitcoin nearing the $108,000 resistance level, which has been tested twice before, forming the infamous “double-top.” This resistance zone aligns with a potential Wyckoff distribution, suggesting a possible stall or reversal in price. 

The close at $106,499 remains a factor in determining the next move. According to Ridk1n, “the wick on Wyckoff distribution” indicates that buyers failed to push beyond the resistance significantly, leaving room for a bearish outcome.

Bearish Divergence on the H4 Chart

Zooming into the 4-hour chart (H4), Ridk1n identified a bearish divergence followed by a lower high. This divergence, where price action forms higher highs while the RSI (Relative Strength Index trends lower, hints at weakening momentum. 

The RSI’s trajectory underscores this, with a series of lower highs aligning with price rejections near $108,000. A failure to reclaim and close above this level could lead to further downside, as confirmed by the H4 structure.

Additionally, the formation of an LH suggests a reversal pattern in play. This implies that bears may have gained control, with a potential breakdown targeting levels below $102,000 in the short term.

A Deeper Look at Market Dynamics

Ridk1n pointed out that the market could enter a correction phase, though the broader trend remains bullish. A dip below key support at $102,000 or $100,000 would validate bearish expectations. 

However, the analyst emphasized that “it does not mean the top is in yet.” Bitcoin’s ability to hold strength against BTC pairings suggests resilience, particularly in a market driven by high leverage.

For those holding leverage positions, Ridk1n advised caution, particularly if Bitcoin drops below critical supports. The message was clear: volatility could intensify, and pain may follow for over-leveraged traders.

What’s Next for Bitcoin?

Should Bitcoin break below the $102,000 mark, it could trigger a cascading effect, pushing prices toward $98,000 and potentially $92,000. Conversely, a close above $108,000 could invalidate the bearish divergence, signaling renewed bullish momentum and paving the way for further gains.

For now, traders are advised to monitor the daily close closely. As Ridk1n quipped, “If we get a close above, the game’s still on; if not, prepare for turbulence!” The coming days will be pivotal in determining Bitcoin’s trajectory, whether it’s a bullish breakout or a bearish reset.