Bitcoin (BTC) is once again testing critical support above $111,000, with traders debating whether the recent pullback marks the start of a deeper correction or a healthy consolidation before the next leg higher. Related Reading: Is Bitcoin About To See A Repeat Of 2020-2021? What Happened After The Last Flash Crash After touching an all-time high above $126,000, the world's largest crypto asset has shed nearly 9% on the weekly charts, reflecting waning momentum amid broader market uncertainty and renewed U.S.-China trade tensions. BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview Bitcoin Tests Key Support as Momentum Fades Currently, Bitcoin is trading around $111,300, down roughly 1% in 24 hours, after briefly dipping to an intraday low of $110,292. Technical indicators show the asset under pressure, with the 20-day and 50-day moving averages turning lower and a bearish crossover emerging on the MACD. The Relative Strength Index (RSI) has fallen to the mid-40s, signaling cooling buying strength and the potential for further downside if support fails. Analysts are eyeing $107,000-$110,000 as the crucial short-term demand zone. A decisive break below this area could open the path toward $100,000, while a bounce above $115,000-$123,000 would be needed to restore bullish sentiment. "Bitcoin's structure suggests fatigue at the top, with a potential double-top formation visible around $126,000," one market analyst noted. "A weekly close below $110K would likely trigger broader profit-taking." Whales Turn Cautious, Bitcoin ETF Inflows Slow On-chain data indicates that BTC whales have increased short exposure, signaling caution among large holders. This aligns with reports of falling ETF inflows, which declined by over $223 million this week after surging more than $2.7 billion the week before. Analysts suggest this cooldown reflects a pause in institutional demand following months of aggressive accumulation. Meanwhile, traders are closely watching macro developments, as gold's rally to a record $4,200 has drawn some capital away from Bitcoin's "digital gold" narrative. Weak U.S. data and tariff-related volatility have added pressure, pushing some investors back toward traditional safe havens. Analysts Warn of Rising Wedge Breakdown Technically, Bitcoin's weekly chart shows a rising wedge pattern, often a bearish setup. If BTC closes the week below $110,000, the structure projects a potential downside target around $74,000, representing a 34% correction. However, long-term metrics such as hash rate and network activity remain strong, suggesting that any deep retracement could offer a buying opportunity for patient investors. Related Reading: Is Bitcoin About To See A Repeat Of 2020-2021? What Happened After The Last Flash Crash For now, Bitcoin's next move hinges on whether bulls can defend the $110K floor. A strong rebound from here could set the stage for another attempt toward $126K, but failure to hold support risks ushering in a much sharper correction before the next major rally begins. Cover image from ChatGPT, BTCUSD chart on Tradingview