Bitcoin showed renewed strength as it climbed past the $107,500 level, sparking hopes of a continued bullish run. However, after reaching a high near $110,375, the cryptocurrency hit a ceiling at the $110,500 resistance zone and has since begun to retrace some of its recent gains.
⚙️ Momentum Builds, Then Cools
Following a successful rebound from the $105,500 support area, BTC managed to break above several key resistance levels, including $106,500 and $108,000. Buyers even pushed the price beyond $109,200 before momentum started to fade. The move up was followed by a pullback, with the price slipping below the 23.6% Fibonacci retracement level of the swing from $105,477 to $110,373.
Adding to the cautious outlook, the BTC/USD pair also broke below a short-term bullish trend line with support near $109,450 on the hourly chart.
📊 Key Price Zones to Watch
Bitcoin continues to trade above the $107,500 level and is holding above the 100-hourly Simple Moving Average (SMA). On the upside, immediate resistance lies around $109,250, with major hurdles at $110,000 and $110,500.
A strong close above $110,500 could reignite bullish momentum, potentially sending BTC toward the $112,000 level. If the rally gains further traction, $115,000 could be the next target.
⚠️ Risk of Pullback Grows
However, if BTC fails to break above $110,000 again, a downside correction appears likely. Initial support is at $108,000, which aligns with the 50% Fibonacci level of the recent upward move. The next key support zones are $107,350 and $106,550, followed by a more critical floor at $105,500. A break below $105,000 could open the door to increased bearish pressure.
📉 Technical Indicators
MACD (Hourly): Losing momentum in the bullish zone, suggesting weakening buying strength.
RSI (Hourly): Now below the neutral 50 mark, a signal of growing selling pressure.
🔑 Summary: Is the Rally Losing Steam?
The recent rejection at $110,500 signals a potential cooling in bullish momentum. While the uptrend isn't invalidated yet, BTC needs to break past $110,500 decisively to maintain upward pressure. Until then, traders should be cautious of a possible retracement toward key support zones in the $107K–$105K range.