- Bitcoin’s price nears $108,000 while RSI dives to 62.45, forming a third straight bearish divergence across cycle highs.
- With over $6B in shorts above $111K, any breakout could trigger a fast-moving squeeze targeting the $120,000 resistance.
- RSI fails to confirm upside while price holds the wedge ceiling-Bitcoin now trades at a structurally critical pressure point.
Bitcoin continues to pressure major resistance levels after reaching $108,795.50 this week, forming another notable 2025 peak. This move arrives as RSI nears its long-standing bearish trendline, creating tension between momentum and market structure.
Tightening Structure Signals Upcoming Decision Point
Bitcoin has now formed three major tops in this cycle-March, November, and July, producing a lower high on the RSI. Weekly candles show peaks near $180,000, $190,000, and now $107,662.15, with the RSI steadily falling from 84.00 to 62.45. The RSI downtrend contradicts price action, forming a persistent bearish divergence pattern.
Source: (X)
At this point in the formation, price remains locked inside a broad ascending wedge capped by a blue diagonal resistance line. Every upward move has failed to break that ceiling decisively, leading to sharp pullbacks, including a crash to $36,000 earlier this year. This current setup shows a market tightening, with higher lows meeting an unyielding ceiling.
As the price touches $108,000 again, momentum is once more facing structural friction. Bitcoin’s RSI needs to break the trendline to support any sustained rally from here. Price is holding above the $100,000 psychological zone, but there is no confirmation yet of a breakout.
Liquidation Metrics Reveal Imbalance Near Critical Levels
Bitcoin’s liquidation chart reveals a striking imbalance between punished longs and exposed shorts. Long positions suffered severe losses between $94,177 and $108,000, clearing excess leverage before the recent move. Bitcoin liquidated aggressively around $102,881, $106,533, and $108,605, where three exchanges-Binance, OKX, and Bybit-saw clustered volume spikes.
Source:
Coinglass
Short pressure starts building just above $110,000, with risks sharply rising past $111,000. More than $6 billion in Bitcoin shorts sit vulnerable above this zone. If price breaks that barrier, a fast-moving short squeeze toward $120,000 could unfold.
Bitcoin now sits between exhausted longs and overstretched shorts, with liquidation metrics clustering tightly around its current level. Volume structure and RSI behavior both signal an inflection point, not a resolution. Traders tracking Bitcoin’s wedge ceiling know that reclaiming the $120,000 peak would require conviction, not just noise.
RSI Divergence Aligns with Wedge Compression
Bitcoin’s RSI continues to trend lower while price prints higher peaks , extending the divergence to a third major cycle. Each of the previous RSI rejections marked the top before steep corrections followed. With the RSI now sitting at 62.45, the pattern mirrors previous rejection zones.
If Bitcoin fails to flip the RSI trendline, downside could resume toward the wedge base near $70,000–$80,000. However, if momentum turns and RSI breaks upward, $120,000 becomes the next test. Everything now depends on this weekly close as structure, sentiment, and volume collide.
