Bitcoin has staged a strong recovery from its recent correction, rebounding sharply off the $107K demand zone. The market is now testing a critical confluence defined by the 100-day MA and the $115K–$118K resistance band, which will likely dictate the next decisive move. Technical Analysis By Shayan The Daily Chart On the daily timeframe, Bitcoin rebounded after tapping into the $107K demand zone and is now pressing against the descending trendline resistance. It has also reclaimed the 100-day moving average, which had been lost temporarily, while the 200-day MA continues to sit lower, providing broader structural support. This maintains a neutral-to-bullish setup, but continuation requires a clean breakout above the descending channel boundary and the $118k supply zone. Failure to overcome these resistances could reintroduce downside volatility, exposing Bitcoin once again to the $107K and $100K demand blocks. The 4-Hour Chart On the 4-hour timeframe, the rally from the order block has shifted short-term momentum in favour of the bulls. However, Bitcoin now faces a cluster of resistance at the descending trendline and the $116K–$118K supply zone. This alignment makes the current level a critical battleground. A rejection here could trigger a pullback toward the $110K order block, where buyer reaction will be crucial to maintain momentum. Conversely, a breakout above both the descending resistance and supply zone would likely propel Bitcoin toward the $124K all-time-high zone, where substantial liquidity is resting. Sentiment Analysis By Shayan Funding rates continue to provide valuable insight into speculative sentiment. Historically, each shift into positive funding has been followed by price surges, as traders pay premiums to maintain long positions, a signal of bullish conviction. Currently, funding rates have turned decisively positive again following the latest price recovery. Unlike previous cycles where funding flipped ahead of rallies, this time the rise is tracking price gains, suggesting speculative demand is aligning with the broader bullish trend. If these elevated funding levels persist without overheating, the probability of a bullish breakout increases, as sustained positive funding typically reinforces confidence and attracts fresh inflows. However, overstretched leverage would carry the risk of short-term corrections. In short, the market is leaning bullish, and as long as funding remains stable, Bitcoin is positioned to attempt a breakout toward new highs. The post Bitcoin Price Analysis: BTC Approaches Key Resistance on Path to New ATH appeared first on CryptoPotato .
