Bitcoin is facing resistance as it approaches $110,500, where multiple bearish divergences have emerged across different timeframes, suggesting a potential trap for price rallies above this mark. Key indicators, including the relative strength index, are trending lower despite the rising price, indicating weak bullish momentum and a higher risk of a pullback. After a brief dip below $100,000 earlier in the year, the bearish divergence remains a concern, with immediate support suggested between $107,500 and $106,000. Traders are increasingly cautious, as sell pressure builds at $110,000, traditionally a rejection zone. Although there are mixed opinions on future movements, some analysts believe it may be poised to break above $112,000 based on futures data, while others highlight recent behavior that suggests traps for leveraged positions. Funding rates remain neutral, reflecting traders' skepticism about a sustained breakout, aligning with prevailing technical indicators. Overall, the cautious atmosphere indicates Bitcoin's price may struggle to maintain momentum in the near term.

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