On Sunday, Bitcoin (BTC) experienced a fleeting surge with it climbing from $107,300 to as high as $108,800, only to relinquish gains by the close of the day. This roundtrip has raised concerns among traders about a potential bearish reversal ahead of the weekly market opening.
While Bitcoin is struggling to rise towards its all-time high since the past few weeks, this uncertain decline has sparked speculation about weakening momentum. This also fuels the possibility of a broader correction as the market hovers near critical technical levels.
At the time of writing, Bitcoin is trading near $107,660—which surged and nearly broke the $109K level earlier today. The 24 hour trading volume for Bitcoin sits at $39.16 billion, seeing an increase of 35% today.
While the Sunday rally initially fueled optimism, it failed to hold the key threshold. Though market analysts have captured the excitement, with some traders anticipating a breakout toward new all-time highs, potentially reaching $110,000–$112,000 this week if the resistance was reclaimed.
However, as the enthusiasm was short-lived, it drove a decent amount of selling pressure and further it could pull Bitcoin price back to around $105K by the end of the session. This roundtrip, where gains are quickly erased, often signals indecision in the market and can foreshadow bearish trends, particularly when coupled with other technical indicators.
Analysts point this trajectory to several concerning signals. The Relative Strength Index (RSI) on daily charts has shown bearish divergence, where price increases are not matched by corresponding momentum, a pattern that preceded pullbacks in December 2024 and January 2025.
Additionally, on-chain data from leading crypto exchanges indicates increased selling activity, with spot market Cumulative Volume Delta (CVD) showing limit and taker selling into the price surge. Moreover, market analysts also note that open interest in perpetual futures has also risen, suggesting over-leveraged positions which would likely amplify volatility.
Despite Bitcoin’s long-term bullish outlook, short-term risks persist. The $107,000–$108,000 range remains a critical battleground, with failure to hold above this level potentially exposing BTC to a drop toward the $100,000–$104,000 support range.
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