Trouble for Bitcoin as this pattern hints at upcoming BTC big correction

As Bitcoin ( BTC ) strives to hold the $110,000 support zone, technical indicators are painting a grim picture, with the asset facing renewed selling pressure after failing to break through a key resistance area. An outlook shared by pseudonymous cryptocurrency analyst BitBull in an X post on September 4 indicated that Bitcoin was rejected from the $114,000 resistance zone on the daily chart, a level that has now turned into a strong supply area. Bitcoin price analysis chart. Source: BitBull The analysis highlighted how BTC attempted to rally back into the $114,000 region but was pushed lower, confirming the level as a ceiling for price action. Currently trading around $110,600, Bitcoin remains below this resistance. Therefore, BitBull warned that unless BTC can reclaim and hold above $114,000 on the daily timeframe, any short-term bounce is likely to be a bull trap, luring traders before the market reverses downward. After a steep decline from its recent peak above $124,000, Bitcoin’s rebound has been shallow and capped by the highlighted resistance zone. Such a setup often signals market weakness, with the inability to push higher suggesting that sellers are firmly in control. BitBull further noted that the longer Bitcoin stays under $114,000, the higher the probability of a major correction before any sustainable reversal takes place. With immediate support near $109,000, a breakdown could open the door to sharper declines toward lower levels. Bitcoin price analysis By press time, Bitcoin was trading at $110,665, having made a modest decline of about 0.6% in the last 24 hours. On the weekly timeframe, however, the asset is up 2%. Bitcoin seven-day price chart. Source: Finbold At the moment, Bitcoin is showing neutrality with its relative strength index ( RSI ) reading at 47.05, without clear overbought or oversold conditions. From a trend perspective, the asset’s 50-day simple moving average ( SMA ) sits at $115,862, notably above the current price, while the 200-day SMA is at $101,390. This setup indicates that Bitcoin remains in a longer-term uptrend, supported by the 200-day average, but short-term weakness below the 50-day SMA reflects ongoing resistance. For bulls to regain control, reclaiming the 50-day SMA will be crucial, while a failure to hold above the 200-day SMA could expose Bitcoin to deeper downside risk. Featured image via Shutterstock. The post Trouble for Bitcoin as this pattern hints at upcoming BTC big correction appeared first on Finbold .