Bitcoin is facing resistance around the $110,000 mark, a level that has proven difficult to surpass. After several attempts by buyers to push the price higher, bears have consistently defended this ceiling, leading to a sell-off and a price pullback. This failure to break through the $110,000 resistance may have prompted short-term traders to take profits, contributing to the downward pressure.
Currently, Bitcoin is trading near $108,000. Crypto analyst Daan Crypto Trades noted on X (formerly Twitter) that while a close above $110,000 would be a positive sign for Bitcoin, a drop below $108,000 could trigger a deeper correction. Investors are now closely watching key support levels, with expectations that buyers will defend the moving averages to prevent a further decline towards $105,000 or even the psychological support level of $100,000.
Despite Bitcoin's struggles at $110,000, several altcoins are showing promising signs. BNB, SOL, LINK, and AAVE are exhibiting the potential to break above their overhead resistance levels if Bitcoin manages to bounce off its moving averages. This suggests that while Bitcoin consolidates, alternative cryptocurrencies may offer near-term opportunities for growth.
Aave (AAVE), for example, is currently facing resistance at $286. However, a positive indicator is that bulls have maintained the price above the moving averages. The upward-sloping moving averages suggest that buyers have the upper hand, although the Relative Strength Index (RSI) near the midpoint indicates weakening bullish momentum. If AAVE rebounds strongly from the moving averages, bulls may attempt to push the price above $286, potentially leading to a jump towards $325. Conversely, a break below the moving averages would invalidate this positive outlook, signaling that bulls have lost control.
Some analysts speculate that U.S. President Donald Trump's "Big Beautiful Bill" could act as a catalyst to propel Bitcoin above its all-time high. Prediction service Kalshi anticipates the US national debt to reach $40 trillion in 2025, a significant increase from $23.2 trillion in 2020, which could further drive interest in cryptocurrencies as a hedge against inflation.
Technical indicators for Bitcoin suggest a mixed outlook. The Relative Strength Index (RSI) is at 28.41, indicating that Bitcoin is currently oversold. The Stochastic oscillator is at 8.47, also signaling oversold conditions. Oversold assets often experience a rebound. Bitcoin's nearest resistance level is at $110,851. If it breaks this level, it could reach the second resistance at $117,332. On the downside, support levels are at $97,889 and $91,408.
In conclusion, Bitcoin's current struggle at the $110,000 resistance level highlights the ongoing volatility in the cryptocurrency market. While Bitcoin's short-term trajectory remains uncertain, the potential of altcoins like BNB, SOL, LINK, and AAVE to rally offers alternative opportunities for investors. External factors, such as potential economic policies and increasing regulatory clarity, could also play a significant role in shaping Bitcoin's future price movement.
