The rally quickly triggered profit-taking, leading to sharp pullbacks across the board. Altcoins largely missed out on the upside, making Bitcoin the sole focus once again. Despite the bullish move, the market remains in uncertain territory.

A Fair Value Gap Has Emerged

Following this surge, technical analysis reveals an upward Fair Value Gap (FVG) between the levels of $110,500 and $109,809. This gap suggests that a price retracement to this region is quite possible.

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Currently, this zone serves as the nearest support area. A bounce from here could confirm its validity. However, any sustained move below it may trigger a deeper correction phase, warning investors to stay cautious.

The 112,000 Dollar Level Stands As A Barrier

To continue the rally, Bitcoin must overcome a crucial resistance at $112,000. This level is significant both psychologically and technically. A clear breakout could signal the beginning of a new bullish leg.

On the other hand, a rejection at this level could pull BTC back into the FVG zone for consolidation. These two zones—resistance and support—will likely define the short-term direction of the crypto market.

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