Bitcoin‘s technical landscape reflects a downward trend following a recent rebound from a high of $126,272. In the first half of Sunday, a bearish engulfing candlestick pattern formed on the daily chart, along with increasing red volume, indicating upward pressure.
Key resistance lies at $118,000 and $126,000, and until the price finally retraces the higher resistance levels, negative momentum is likely to dominate.
BTC/USD daily chart on Bitstamp 12th of October 2025
The four-hour chart shows continued weakness: a short-term bottom formed at $109,683, followed by a limited recovery. This rebound was marked by low volume, suggesting a lack of enthusiasm among market participants.
Structurally Bitcoin The stock is trading within a potential bear flag or short-term upward correction, increasing the likelihood of further declines if the price fails to break out of the $115,000 range and hold above it. Failure to break above this threshold could trigger a decline toward the $109,000 area.
4-hour chart of BTC/USD on Bitstamp 12th of October 2025
The hourly chart shows that Bitcoin is in a consolidation phase after a sharp drop from $122,582 to $109,683. The current price dynamics could indicate either accumulation or distribution, depending on the direction of the next breakout.
Volume has noticeably declined during the recent rebound, contrasting with the higher volume seen during the decline. This suggests the emerging uptrend is weak. A clear move above $114,000 with corresponding volume would indicate short-term bullish momentum, although the underlying structure remains bearish.
BTC/USD Hourly Chart Bitstamp 12th of October 2025
A review of key indicators highlights prevailing indecision. The Relative Strength Index (RSI) is at 42, indicating neutral market conditions. The Stochastic Oscillator is at 15, and the Commodity Channel Index (CCI) is at -69, suggesting weak momentum.
The Average Directional Index (ADX) at 28 indicates a trend that has yet to achieve clear direction. Meanwhile, the Momentum Indicator is at -8571, and the Moving Average Convergence Divergence (MACD) is at 429, indicating weakness in the recent price trend.
Bullish scenario:
Despite the recent price reduction, Bitcoin maintains structural integrity above key long-term moving averages, indicating recovery potential, especially if buyers return to the $114,000-$116,000 range.
Bearish scenario:
Since the momentum indicators are trending negatively and the price is constantly bouncing off the lower resistance zones, Bitcoin remains vulnerable to further declines. A retest of $109,000 or even a move to $107,000 is possible.