Bitcoin is officially back in bearish territory after a dramatic fake-out above $108,500 shattered bullish hopes as it crashes, and confirmed a sharp trend reversal.
The world’s largest cryptocurrency has snapped out of its short-term uptrend on the 1-hour chart, triggering a wave of bearish continuation signals that now place lower liquidity zones squarely in focus. Traders who bought into the breakout are now trapped, as BTC/USD swiftly rejected higher levels and dropped back into the previous range, marking the move as a classic bull trap.
After failing to sustain gains above $108.5K, Bitcoin broke down from its rising channel, validating the shift from accumulation to distribution. This breakdown is significant, not just for the structure change, but because BTC has since retested the underside of the broken channel, aligning perfectly with the 50% equilibrium zone of the recent range. This technical confluence reinforces the bearish narrative and signals that sellers are fully in control unless BTC reclaims $107,000 convincingly.
With the structure shattered, key technical targets have now shifted to the downside. Immediate support is located at $104,600, which held during previous consolidation. But if this level gives way, all eyes turn to the next major liquidity zone around $102,000, where a potential reversal could occur if buyers step in.
Senior analyst Saqib Iqbal of Bitcoin.net breaks it down: “As long as Bitcoin remains below the broken trendline and $107K, sellers are in control. We’re watching $104.6K as the first support test, followed by a potential flush to $102.8K if pressure builds.” That perspective is becoming increasingly popular as market sentiment continues to lean bearish, with traders hesitant to step back in without clear reversal signals.
To add to the pressure, the $107K level now serves as the invalidation point for any short-term bullish outlook. If BTC somehow regains footing above that level, it could cancel out the bearish thesis. But right now, price action says otherwise. The chart paints a clear picture of a failed breakout, distribution in motion, and downside targets ready to be tested.
Bitcoin’s fake-out above $108,500 wasn’t just a failed rally attempt, it was a momentum shift. Now the pressure is building at lower levels, with traders hunting for signs of a bounce or further breakdown. With BTC hovering below key levels and no bullish catalyst in sight, the bias stays firmly to the downside for now.
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