Bitcoin Price Struggles to Hold $113K as Bearish Momentum Strengthens

What to Know

• Bitcoin’s weak bounce around $113,000 shows limited buying power and low trading volume.
• Bearish indicators are flashing across hourly and daily charts, including descending moving averages and a trendline break.
• Support sits near $112K and $110K, with resistance overhead at $116K, $120K, and $122K.
• A sustained move above the 50-day SMA could help invalidate the bearish outlook.

Bitcoin (BTC) continues to face downward pressure after dipping below key price levels, with bulls struggling to establish a firm base near $113,000. Despite short-term attempts to rebound, momentum indicators remain firmly bearish, suggesting the market could slide toward lower support zones if buying demand fails to pick up.

Bitcoin’s Weak Rebound Shows Limited Strength

As of Wednesday, Bitcoin is trading near $113,196, with its attempted bounce showing little conviction. Prices briefly tested levels above $114,000, but upside momentum quickly stalled. Trading volumes also remain subdued, particularly when compared with the heavy selling pressure that marked the earlier decline earlier this week.

The lack of meaningful recovery points to fading buyer interest and heightened caution among traders. This dynamic reinforces the broader view that Bitcoin remains vulnerable to further downside moves.

Technical Indicators Point Toward Bearish Momentum

Short-term technical signals continue to highlight weakness in Bitcoin’s price action. The 50-, 100-, and 200-hour simple moving averages (SMAs) are currently aligned in descending order, with all three trending downward. This type of setup is often associated with sustained bearish momentum and typically precedes further declines.

At the same time, Bitcoin has slipped below a key rising support level that had previously underpinned its bullish trajectory in recent months. The loss of this structural support indicates a potential shift from a bullish environment into a more prolonged bearish phase.

Momentum indicators further confirm the weakening outlook. Both long-term and short-term MACD readings have moved deeper into negative territory, reflecting growing downward pressure. This reinforces the probability of extended weakness in the sessions ahead unless buying activity strengthens significantly.

Key Support and Resistance Levels

With downside pressure building, Bitcoin traders are watching the next significant support zones. The first level is $111,982, which served as a pivot point earlier in August when the market rebounded. Below that, the 100-day SMA near $110,053 provides another cushion. If this fails, the 200-day SMA around $100,484 becomes the ultimate line of defense for bulls.

On the upside, reclaiming resistance levels will be critical to restoring confidence. The nearest barrier lies at the 50-day SMA near $116,033. A convincing break above this level could help invalidate the bearish setup. Beyond that, resistance levels sit at $120,000 and $122,056, marking the next zones where sellers may re-emerge.

Market Sentiment and Outlook

Bitcoin’s inability to sustain momentum above $114,000 reflects broader caution among traders. The lack of buying pressure during rebounds suggests market participants are hesitant to commit capital until stronger confirmation of support is established.

If Bitcoin fails to hold current levels, traders could see a test of the $112K to $110K range in the short term. However, a decisive move above $116K may restore bullish momentum and shift sentiment back toward retesting higher levels.

How Traders Can Approach the Market

For active market participants, current conditions demand caution and clear risk management strategies. Bears appear to have the upper hand, but volatility remains high, creating opportunities for both long and short positions depending on key breakouts.

• Short-term traders may look to scalp profits within the $112K–$116K range, keeping a close eye on trading volume.
• Swing traders should watch the 50-day SMA as a decisive indicator. A break above could signal renewed bullish momentum, while continued rejection points toward further declines.
• Long-term investors may view dips toward the 200-day SMA as potential accumulation opportunities, though patience is required given the prevailing bearish momentum.

Q&A: Bitcoin Price Weakness Explained

Why is Bitcoin struggling to bounce back above $113,000?

Bitcoin’s recovery attempts are limited by low trading volumes and bearish technical indicators. Without strong buyer interest, rebounds are failing to gain traction.

What are the key support levels for Bitcoin right now?

The primary support levels are $111,982 and $110,053, with deeper support at the 200-day SMA near $100,484.

What resistance levels must Bitcoin overcome to regain strength?

The first resistance is at $116,033 (50-day SMA). Beyond that, $120,000 and $122,056 serve as critical upside targets.

Does the current chart setup favor bulls or bears?

The descending moving averages, broken trendline, and negative MACD signals point to bearish control in the short term. Bulls need a breakout above $116K to regain momentum.

Could Bitcoin retest $100,000?

If Bitcoin breaks below $110K support and selling accelerates, a retest of the 200-day SMA near $100,484 becomes possible. However, this would require sustained bearish momentum and failure of nearer support zones.