Bitcoin price faces resistance at $110,500 with bearish divergences, potential pullback risk

Bitcoin’s price rally to $110,500 faces bearish divergences on multiple time frames, signaling a potential pullback. Traders eye a rally above $112,000, but increasing sell pressure and liquidity sweeps suggest traps. Technical analysis shows weakening bullish momentum, with a near-term pullback risk. Bitcoin’s one-day chart reinforces a cautious outlook with a bearish divergence since hitting all-time high of $111,800. US Non-Farm Payroll data helped push BTC near $110,000, but bulls failed to maintain the breakout. Funding rates remain neutral, indicating traders may not fully believe in a sustained breakout. Bitcoin traders remain split on the next move as the cryptocurrency consolidates below $110,000. Some see a potential $112,000 breakout based on futures data, while others note increased sell pressure around $110,000. Liquidity sweeps above resistance levels and below supports suggest fakeouts to flush out leveraged positions before a real move occurs.

Read more at Cointelegraph: Bitcoin Faces Resistance as Bearish Divergences Emerge