Bitcoin’s recent trading activity highlights increasing downside risks as analysts warn of potential bearish momentum. After slipping through key support levels, the cryptocurrency is showing signs of a fragile rebound, though broader indicators point to caution.

While some analysts anticipate a temporary bounce, the larger trend suggests continued vulnerability as leveraged trades and macroeconomic pressures add to volatility.

The price action over the past week has shown Bitcoin bouncing within a narrow range, but technical charts suggest that traders face difficult decisions on whether to hold, short, or position for a rebound.

On the hourly chart, Bitcoin recently bounced several times near $112,700, providing temporary support for traders watching intraday moves. However, resistance has remained strong around $114,800, preventing further gains.

If the price fails to hold the current floor, a bearish breakout could push Bitcoin toward $110,000. Conversely, breaking above $114,800 may open the way for the next resistance around $116,500, keeping short-term sentiment mixed.

Crypto analyst BitcoinHyper shared analysis on social media platform X, noting that Bitcoin’s structure across 1-hour, 2-hour, and 4-hour charts shows a clear downtrend after breaking horizontal and weekly support.

If lower, this is the best support on Bitcoin. Most will probably get scared: youtube.com/watch?v=BpOEo6…

Despite a recent 10% drop followed by a short bounce from daily support levels, the analyst warned of deeper risks ahead.

His “ideal scenario” includes a short-term rally toward $119,000, potentially triggering a short squeeze that could force liquidations of traders betting against Bitcoin.

However, following such a bounce, Bitcoin could face further correction toward $108,000, and in a more severe scenario, decline as far as $18,000 if a larger rising wedge pattern develops.

Technical indicators, including the Daily RSI and Stochastic oscillator, currently show oversold conditions, suggesting room for a rebound. Even so, the prevailing trend remains negative, pointing to cautious trading strategies.

Experts observed that Bitcoin is likely to trade within a range of $112,000 to $118,000 in the near term. He cited cautious investor sentiment and profit-taking as key reasons for the restricted range.

The build-up of leverage in futures markets also adds the risk of sharp price swings, which could magnify any sudden move in either direction.

Lee also underlined that macroeconomic factors, including upcoming Federal Reserve policy decisions, may influence Bitcoin’s next direction.

With structural demand and speculative trading both active, the cryptocurrency market is currently balanced between opportunities for rebound and the risk of deeper corrections.

Beyond technical and short-term market conditions, history also plays a role in shaping sentiment. Bitcoin has traditionally recorded slightly negative returns in September, adding to caution among traders this month.

This seasonal trend, combined with structural leverage and macro uncertainty, makes the current market environment more fragile than it appears from intraday rebounds.

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