Bitcoin hovers above $109K, with a double-top pattern hinting at a possible correction.
As Bitcoin remains near the psychological level of $110,000, short-term price action suggests a double-top reversal. Could increasing market greed fuel a pullback below $106,000?
Market Sentiment Hits Greed Phase
According to a recent tweet by Darkfost, a crypto analyst, the Crypto Fear and Greed Index has entered the greed phase. Historically, extreme greed in this index often signals a local top. However, it can also reflect increased optimism for strong Bitcoin performance.
📊 I'm sure you're starting to feel it, the greed sentiment is settling in across the market, with a rising hope for a strong performance from ETH in particular.
Looking at the Fear and Greed index chart, we can clearly see that we’ve entered the Greed phase.
⁰👉🏼 This isn't… pic.twitter.com/NXgU3bo1nL— Darkfost (@Darkfost_Coc) June 11, 2025
Bitcoin Price Analysis
On the 4-hour time frame, Bitcoin’s price shows a bullish attempt to maintain dominance above the $100,000 mark. This has led to a sideways trend, with local support forming above the $109,000 level.
-
Bitcoin price chart
However, the price action suggests a double-top pattern, with the neckline at the $109,000 mark. A potential dip below this level could lead to an extended correction. A bearish divergence in the RSI also supports the possibility of a gradual decline.
According to trend-based Fibonacci levels, a potential reversal could test the 23.60% Fibonacci level at $105,905, indicating a downside risk of over 3% if sellers regain control.
On the flip side, a breakout above the 50% Fibonacci level at $110,664 could extend the bullish trend toward a new all-time high. The 100% Fibonacci level, just below $120,000, remains a potential price target.
Bullish Sentiment Declines in BTC Derivatives
As technical analysis points to a possible correction, bullish sentiment appears to be fading in the Bitcoin derivatives market. Open interest is down 2.51% to $75.09 billion, reflecting a $1.8 billion decline.
-
Bitcoin derivatives
In the past 24 hours, liquidations of around $28 million from both long and short positions indicate ongoing uncertainty in Bitcoin’s trend. However, a long/short ratio of 1 and a spiking funding rate of 0.0075% suggest underlying optimism remains.
Binance traders show a bearish bias: 65.91% of accounts involved in BTC perpetual trading hold short positions. This suggests a majority of Binance traders anticipate a steeper correction in Bitcoin.
-
Bitcoin Binance Traders
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
