Bitcoin (BTC) price has increased more than 8% in the past seven days, reaching a new all-time high on January 20, when it surpassed $108,000 for the first time. This notable surge has fueled speculation as to whether BTC’s uptrend will continue to test new resistance levels or face a potential correction.
Despite the strong bullish move, technical indicators such as the DMI and RSI suggest the trend may be weakening, with sellers starting to gain more influence.
BTC DMI Suggests Sellers May Be in Control
Bitcoin’s DMI chart reveals that ADX has dropped from 30.7 to 23.2 over the past two days, highlighting a weakening trend. ADX measures trend strength with values above 25 indicating a strong trend and below 20 indicating a lack of direction.
Reading the reading below 25 currently suggests that BTC’s bullish momentum is losing strength, which could imply a slowdown in market activity or a pause in the uptrend.
Meanwhile, +DI has dropped sharply from 34.8 to 19.7 in one day, reflecting decreasing buying pressure, while -DI has increased from 17.8 to 26.6, showing increasing selling pressure. increase.
This shift shows that although BTC is technically still in an uptrend, +DI is weakening and -DI is strengthening indicating the market is losing momentum. If this trend continues, Bitcoin price could enter an accumulation phase or risk a correction, especially if -DI surpasses +DI, signaling bearish dominance.
Bitcoin’s RSI Indicates Falling Momentum
BTC’s RSI is currently 50.9, down from 65.5 just a day ago, indicating a shift in momentum. The RSI measures the speed and intensity of price movements on a scale of 0 to 100, with values above 70 indicating overbought conditions and the possibility of a price correction.
Meanwhile, values below 30 indicate oversold levels and a possible recovery. A reading of around 50 shows neutral momentum, with neither side between buyers and sellers clearly in control.
With BTC’s RSI currently at 50.9, it reflects a balance between buying and selling pressure, but the recent decline from 65.5 suggests the uptrend is weakening.
This could indicate that BTC’s recent rally is losing momentum, with the price potentially entering an accumulation phase. If RSI continues to decline near 40, this could indicate increased selling momentum, while a recovery above 60 could reignite bullish sentiment.
BTC Price Prediction: Could Bitcoin Reach $110,000?
BTC’s EMAs show it is currently in an uptrend, with the short-term lines above the long-term lines. However, the narrowing gap between these lines suggests that the upward momentum may be weakening, signaling a potential decline in the trend’s strength.
If the uptrend regains strength, BTC price could test resistance at $105,700, and a breakout could push the price to $108,500. Additional momentum could take BTC to $110,000 for the first time.
Conversely, if momentum cools, BTC price could test support at $98,800, with a drop to $97,800 and $91,200 possible if this level is lost. A deeper decline could send BTC price below $90,000 to test critical support at $89,400.
