Bitcoin price rally stalls as price hesitates between demand and profit-taking pressure
Bitcoin traded mildly lower by 0.83%
Bitcoin price action continues to hold its recent upside trajectory, following a strong four-day winning streak that began late last week.
This rally faced technical resistance at $110,600, a well-established supply zone that has capped further gains into Wednesday trading sessions.
- Bitcoin forms a Dragonfly Doji near $110,600 resistance after a four-day rally
- Price consolidation around $109,370 is occurring on rising volume
- The 4-hour 20 EMA and $108,350 zone form near-term support
On Tuesday, price behaviour reacted to this level by forming a Dragonfly Doji candlestick on the daily chart, which reflects a sharp intraday dip to $108,350 before buyers stepped in to push the close slightly above the open at $110,210. The long lower wick of the candle indicates strong demand at lower levels, highlighting a clear price rejection that suggests buyers were not ready to give up control.
BTC price dynamics (May - June 2025). Source: TradingView
The appearance of a Dragonfly Doji after a rally typically raises questions about trend exhaustion or continuation, and in this case, the structure of the candle confirms that although sellers tested downside pressure, bulls absorbed that pressure effectively. However, the inability to break past the $110,600 level after the Doji reflects short-term hesitation or consolidation in the face of resistance. This hesitancy translated into today's price action.
Bitcoin volume rises during low volatility zone suggesting breakout pressure
During the Asian session on Wednesday, Bitcoin traded mildly lower by 0.83%, and has since shifted into a tight sideways range in the European session around $109,370. What makes this range-bound movement notable is the accompanying increase in volume. Increasing volume during low volatility phases often suggests that market participants are building positions for a potential breakout.
From a technical perspective, the short-term support zone is aligning closely with the previous day's low, around $108,350, which also coincides with the current position of the rising 20 EMA on the 4-hour chart. This sets up a key battleground area for bulls and bears. If sellers break below this level, Bitcoin risks giving back a good portion of its weekly gains, which currently stand at 3.5%. On the flip side, a breakout above $110,600 would clear the way for a test of the all-time high near $112,000. The market is now poised in a short-term decision zone as Bitcoin consolidates, caught between profit-taking near highs and strong support from dip buyers.
Bitcoin price jumped 4.5% on Monday to $110,600 as buyers drove a fourth straight daily gain. Trading volume rose above the 3-day average showing strong bullish conviction.
