Bitcoin’s Rally at Risk: Bollinger Bands Flash Warning at $112K

A Shaky Summit for Bitcoin’s Bull Run

Bitcoin’s charge toward $112,000 is hitting turbulence, with technical indicators signaling the end of its local uptrend. After rebounding from April 2025 lows near $75,000, BTC has repeatedly stumbled at the upper Bollinger Band, prompting John Bollinger, the metric’s creator, to warn of a potential reversal. As the crypto king hovers around $110,000, traders are bracing for consolidation—or worse.

Bollinger’s Bearish Signal: Trend Exhaustion?

John Bollinger, the famed analyst behind Bollinger Bands, flagged a “Three Pushes to a High” pattern on Bitcoin’s daily chart, a formation often marking trend exhaustion. Since April, BTC has been rejected three times at the upper Bollinger Band, near $110,000–$112,000, forming lower highs since its all-time high of $111,970. Bollinger’s June 13 X post called time on the rally, suggesting a “W” bottom followed by sharp pushes signals weakening momentum. If support at $102,900 breaks, bears could target $97,000.

Market Obstacles: Liquidity Walls and Fading Hype

Beyond Bollinger’s warning, Bitcoin faces structural hurdles. Large ask liquidity blocks between $112,000 and $120,000 are capping gains, with sellers dominating at these levels. The Relative Strength Index (RSI) has dipped to 20, indicating a drop in momentum buyers, while trading volume has thinned near $106,000 resistance. X posts reflect mixed sentiment: some traders eye a bounce to $107,000–$109,000 if $101,000 holds, while others predict a deeper correction to $91,000.

Corporate Bitcoin Bets: A Double-Edged Sword

Yesterday, we explored GameStop’s $500 million Bitcoin treasury pivot, which tanked its stock 20%. The corporate BTC craze—led by Strategy’s $63 billion hoard and echoed by firms like Trump Media—has fueled Bitcoin’s rally but also heightened volatility. While 80 companies now hold 3.4% of BTC’s supply, their buying spree hasn’t shielded the price from technical resistance. GameStop’s market backlash suggests corporate enthusiasm alone can’t sustain $112,000 without broader catalysts, like a Federal Reserve rate cut.

Macro Context: No Clear Catalyst in Sight

Analysts at Bitfinex argue Bitcoin needs a “strong macro or structural upside catalyst” to break $112,000, a view echoed on X. Despite earlier bullishness—BlackRock’s Bitcoin ETF saw $530 million in inflows on May 22—recent macro triggers, like U.S. unemployment data, haven’t moved the needle. With the Fed holding rates steady, Bitcoin’s May peak near $111,000 feels increasingly like a ceiling, not a springboard.

Conclusion: Bitcoin at a Crossroads

Bitcoin’s flirtation with $112,000 is teetering, as Bollinger Bands and market dynamics flash caution. While corporate adoption and ETF inflows provide tailwinds, technical resistance and fading momentum suggest consolidation or a pullback looms. Traders must watch $102,900 support and $112,000 resistance for clues. In a market driven by hype and high stakes, Bitcoin’s next move hinges on whether bulls can muster a catalyst—or if bears will seize control. As GameStop’s BTC bet showed, bold moves don’t always pay off.