Bitcoin’s near-term outlook now hinges on whether 112,000 zone can hold as support after last week’s brief breakout to a record 124,553. The sharp reversal has shifted attention to this key level, with selling pressure still visible as the new week begins.
The current decline was triggered by U.S. Treasury Secretary Scott Bessent, who unsettled markets by revealing government Bitcoin reserves were worth only USD 15–20 billion, far below estimates. He added that Washington would not buy new bitcoin for its strategic reserve, instead relying on confiscated assets to build holdings.
While he later clarified on X that Treasury remained open to “budget-neutral pathways” to expand reserves, confidence took a hit. Investors interpreted the comments as a sign Washington is unlikely to bolster demand in the near term.
Combined with stretched technicals, the backdrop encouraged traders to lock in profits, ending Bitcoin’s latest rally attempt prematurely.
Technically, momentum is fading. Bearish divergences in both the daily and 4-hour MACD highlight loss of upside strength. While another test of the highs cannot be ruled out, gains above 124,553 appear constrained.
Instead, focus has shifted to the 111,889 structural support. Decisive break there would confirm correction of the rally from 74,373, opening the door for a pullback to 38.2% retracement of 74,373 to 124,553 at 105,384.
That could set the stage for either prolonged consolidation or a deeper pullback before any fresh bullish leg.
