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Can Bitcoin Break $110,500 and Ignite a New Crypto Rally?

Bitcoin’s price action is locked below $110,500, a level repeatedly tested but not yet conquered. As volatility tightens and bullish signals build, the crypto market braces for a decisive move that could set the tone for the coming weeks.

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By Elijah Phillips

3 min read

Image for illustrative purpose.
Image for illustrative purpose.

Bitcoin’s price is currently consolidating just under the critical $110,500 resistance, with the latest real-time quote at $107,994. This level has acted as a ceiling for several sessions, with multiple failed breakout attempts.

Bulls remain active, defending the 20-day EMA and key structural supports, while bears continue to sell into rallies, creating a tense standoff.

The market’s focus is on the $110,500 zone, which, if breached, could trigger a rapid move toward $114,500 and even higher targets.

However, the lack of a clear bullish catalyst and cautious investor sentiment suggest that any breakout must be confirmed by strong volume and sustained momentum.

Volatility Squeeze Signals Imminent Break

Technical indicators show that Bitcoin’s Bollinger Bands are tightening on the 4-hour chart, a classic precursor to a sharp price move. The Relative Strength Index (RSI) is hovering in neutral territory, while the MACD has flattened after a recent bullish cross, reflecting indecision among traders.

Market watchers are closely monitoring for a spike in trading volume or a break in the current triangle pattern. A decisive candle close above $110,500, with follow-through buying, would likely ignite a new rally.

Conversely, a break below $107,000 could initiate a deeper retracement toward $105,300 or lower.

Did you know?
The $110,500 level has emerged as a pivotal resistance for Bitcoin in July 2025, echoing similar consolidation phases seen before major rallies in previous bull cycles. Historically, prolonged periods of low volatility and tight ranges have often preceded explosive price action in the crypto market.

Institutional Flows and Macro Factors Shape Sentiment

Institutional participation remains a key driver, with Bitcoin exchange-traded products (ETPs) attracting significant inflows, albeit at a slower pace than previous weeks.

Analysts note that continued demand from ETFs and treasury allocations could support higher price targets, especially if macroeconomic conditions remain stable.

The Federal Reserve’s recent decision to hold interest rates steady has had a neutral impact, leaving the market searching for a new catalyst.

Regulatory clarity and the absence of negative shocks are considered prerequisites for a sustained breakout above resistance.

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Altcoin Markets Await Bitcoin’s Next Move

Altcoins are displaying mixed momentum as traders await Bitcoin’s direction. Many large-cap coins, including Ether, XRP, and Solana, are consolidating within well-defined ranges.

A successful Bitcoin breakout could provide the spark for broader market gains, while a failure at resistance may keep altcoins in check.

Technical setups across the crypto sector suggest that volatility is building, with several assets poised for significant moves once Bitcoin establishes a clear trend.

Market Outlook Tilts Cautiously Bullish

Despite the repeated rejections at $110,500, Bitcoin’s structure remains constructive as long as key supports hold. The rising 20-day EMA and sustained buying interest at lower levels underscore the bulls’ resilience.

However, the market’s inability to generate a convincing breakout reflects lingering uncertainty and the need for a clear trigger.

Analysts project that if Bitcoin can close above $110,500, the next targets include $113,500, $114,500, and potentially $120,000 in the coming weeks, provided institutional flows and macro conditions remain favorable.

Until then, traders should remain vigilant for signs of a decisive move in either direction.

Do you believe Bitcoin will break above $110,500 this week and start a new rally?

Total votes: 166

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