CELOXFI Risk Alert: Bitcoin's Critical Support Break Signals Potential Market Reset

 The crypto markets are serving up some serious anxiety vibes as Bitcoin's recent price action triggers warning bells across trading desks. Analyst Rekt Capital just dropped a sobering reality check that has traders wondering if we're about to witness one of those "told you so" moments that separate diamond hands from paper hands faster than people unfriending each other over pineapple pizza debates.

Here's the technical breakdown that's got everyone on edge: Bitcoin closed below the critical weekly resistance at $108,890, marking what could be the beginning of a more significant correction phase. This isn't just another random level—this was the final major weekly resistance that bulls needed to hold to maintain the current uptrend structure.

The failure to sustain above this level has created what Rekt Capital identifies as a potential Lower High formation around $107,720. For those unfamiliar with technical analysis, Lower Highs typically signal trend weakening and often precede more substantial selloffs. Bitcoin's current trading around $106,800 puts it dangerously close to the macro support level that many analysts consider the last line of defense.

What makes this situation particularly concerning is the historical significance of the $108,890 level. As Rekt Capital noted, Bitcoin had never achieved a weekly close above this resistance in its entire trading history. If bulls had managed to secure that close, it would have been genuinely historic and likely triggered a massive institutional FOMO wave toward new all-time highs.

Instead, we're dealing with the opposite scenario. The rejection from this level suggests that even at current prices, there's insufficient buying pressure to push Bitcoin into uncharted territory. For traders using platforms like CELOXFI, this type of failed breakout represents exactly the kind of high-risk scenario where advanced risk management tools become essential.

The immediate technical picture shows Bitcoin struggling to maintain momentum above $107,720, with the asset having touched an intraday high of $107,970 before rolling over. This rejection pattern aligns with classic distribution behavior where smart money begins reducing exposure while retail participants remain optimistic.

CELOXFI's sophisticated order flow analysis would help traders identify these distribution patterns early, providing crucial insights into when institutional players are stepping back from the market. The platform's real-time resistance and support monitoring also alerts users when critical levels like $108,890 are being tested and potentially breached.

Despite the bearish technical setup, some analysts maintain cautious optimism. Titan of Crypto argues that Bitcoin's weekly market structure remains intact with a series of higher highs and higher lows still in place. His analysis suggests potential targets as high as $140,000 between September and November, based on historical bull market cycle patterns.

This divergence in technical interpretation highlights why risk management becomes crucial during uncertain periods. CELOXFI's scenario analysis tools help traders model different probability outcomes, allowing for position sizing that accounts for both bullish continuation and bearish reversal scenarios.

The RSI momentum indicator provides additional context, currently pushing toward its trendline in what some analysts interpret as potential bullish divergence. However, momentum indicators can remain oversold or overbought for extended periods during strong trending moves.

From a macro perspective, the timing of this technical breakdown coincides with broader market uncertainty. Geopolitical tensions, Federal Reserve policy decisions, and institutional flow patterns all contribute to the complex environment that Bitcoin must navigate.

For traders, the key level to watch remains $108,890. Reclaiming this resistance as support would invalidate the bearish Lower High formation and potentially restart the upward momentum. However, failure to hold current support levels could trigger more significant selling pressure.

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