Bitcoin’s repeated failures to break and hold above the $110,000 mark highlight a growing challenge for bullish traders. The latest rejection, coinciding with stronger-than-expected US employment data, has cast doubt on the cryptocurrency’s ability to sustain upward momentum in the near term. Historically, multiple rejections at major resistance levels have preceded sharp corrections, as seen earlier in 2025 and in previous bull cycles.
Technical indicators are flashing warnings, with bearish divergences on the relative strength index and increased selling pressure at the $110,000 barrier. The market’s inability to clear this level after three attempts since the May all-time high suggests that buyers are losing conviction, at least temporarily.
Key Support Levels Will Determine the Next Move
With Bitcoin currently trading near $109,000, investors are focusing on crucial support zones located just below. Analysts highlight the $108,000–$107,500 range, where the 50-day simple moving average sits, as an immediate area to watch. A breakdown below that level could open the door to deeper losses, with further support at $106,000 and a psychological floor at $105,000.
If these levels fail, historical patterns suggest a potential 14-18% drop from current prices, mirroring previous corrections after failed breakouts. Conversely, holding these supports may allow bulls to regroup and attempt another push higher.
Did you know?
Historically, July has delivered a median 8% gain for Bitcoin, suggesting that seasonal trends could still provide a tailwind if bulls reclaim control.
Technical and Fundamental Factors Shape Market Sentiment
The broader macroeconomic environment is also influencing Bitcoin’s price action. Strong US employment data has dampened hopes for near-term interest rate cuts, reducing risk appetite and adding to the selling pressure. At the same time, technical signals such as neutral funding rates and high taker sell volume reinforce the cautious mood among traders.
Despite the short-term uncertainty, some market participants remain optimistic about Bitcoin’s long-term prospects, citing continued institutional adoption and the potential for a breakout if resistance is cleared. However, the immediate outlook hinges on whether bulls can defend support and reverse the current momentum.
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Volatility Expected as Bulls and Bears Battle for Control
Market analysts expect heightened volatility in July, with several policy and economic events on the horizon that could sway sentiment. Bitcoin’s price is currently consolidating within a wedge formation, suggesting that a decisive move, either a breakout above $110,000 or a breakdown below key supports, could set the tone for the coming weeks.
The largest liquidity cluster sits just above $110,000, raising the possibility of a short squeeze if bulls manage to reclaim this level. Conversely, heavy bid orders around $108,000 and below indicate strong interest from buyers seeking to defend the current range.
Long-Term Outlook Remains Constructive Despite Near-Term Risks
While the current rejection has put bulls on the defensive, the long-term trend for Bitcoin remains intact, with some analysts still targeting $115,000 or higher if resistance is broken. Investors are watching for signs of accumulation and positive technical signals that could support a renewed rally.
Ultimately, the ability of bulls to regain momentum will depend on defending critical support levels and overcoming persistent resistance at $110,000. Until then, traders should brace for continued volatility and monitor both technical and macroeconomic developments closely.
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