Bitcoin Indicator Shows Bears Dominate Market With Rising Volume – Details

Bitcoin is under pressure as it tests a key support level near $105K after retracing from its recent all-time high of $112K. The pullback comes amid heightened market uncertainty, triggered by the Federal court’s temporary reinstatement of former President Donald Trump’s tariffs on dozens of countries. This unexpected legal development has added new volatility to global markets, fueling speculation and nervousness across risk-on assets, including cryptocurrencies.

Despite a strong uptrend in recent months, BTC now faces a critical moment. The bulls are attempting to defend the $105K–$106K region, which has emerged as a short-term demand zone. A decisive breakdown below this level could open the door to a deeper retracement, while a strong bounce may reaffirm the broader bullish structure.

Adding to the caution, on-chain data from CryptoQuant shows that the Bitcoin Cumulative Net Taker Volume has turned negative, indicating increased aggressive selling. This bearish strength suggests that sellers are currently dominating market orders, potentially undermining upward momentum if demand doesn’t pick up soon.

Bitcoin Holds the Line As Bears Increase Pressure

Bitcoin is testing a critical support zone just above $105K, a level that could define the next phase of this cycle. After reaching an all-time high of $112K, BTC has cooled off, and now the market is on edge as global economic tensions flare. The ongoing tariff standoff between the United States and China is reshaping macro conditions, triggering volatility and defensive behavior across markets.

Despite these headwinds, Bitcoin appears to be holding relatively well. Unlike equities and some risk-on assets, BTC and ETH continue to show resilience in the face of macroeconomic uncertainty. Many investors view Bitcoin as a hedge against systemic stress, and the current price action supports that thesis.

Still, pressure is building. Top analyst Axel Adler shared key insights revealing that bears have been putting on significant pressure over the past five days, with strong sell-side volume indicating increased short-term uncertainty. This trend suggests that while long-term holders remain confident, short-term traders are actively selling into strength, potentially capping any immediate breakout attempts.

If Bitcoin manages to hold current levels and absorb the selling pressure, it could trigger an impulsive move higher, confirming the broader uptrend. However, a breakdown below support might invite deeper retracement and test market confidence. With volume spiking and global headlines dictating sentiment, the coming days could prove pivotal for Bitcoin’s short-term direction.

Price Action Details: BTC Testing Demand

The 4-hour chart shows Bitcoin pulling back to test the $105K–$106K support zone after failing to reclaim the $109K resistance level. Price action has weakened since the rejection near the $112K all-time high, with consecutive lower highs and lower lows forming in recent sessions. BTC is now trading below the 34-period EMA and the 50 and 100 SMAs, indicating short-term bearish momentum is gaining traction.

The support at $105K is crucial. It’s not only the base of the last consolidation zone but also sits just above the horizontal level at $103,600, which marked the breakout structure earlier in May. A breakdown below this range could trigger increased selling pressure and open the door for a retest of the 200 SMA near $102K.

Volume remains elevated, and recent candles show strong sell-side activity, aligning with CryptoQuant data pointing to growing bearish strength in net taker volume. However, bulls still have a chance to defend this zone and reset the trend. A successful bounce from here, followed by a reclaim of $109K, would restore momentum and potentially signal the next leg higher. Until then, BTC remains range-bound and vulnerable to further downside in the short term.

Featured image from Dall-E, chart from TradingView