Bitcoin’s upward trajectory has hit a wall yet again, faltering at the $110,000 mark. This is the third time this year that the cryptocurrency’s ascent has been thwarted at this level, raising concerns among bullish traders who hoped for a breakthrough. The latest stall comes on the back of robust U.S. employment data that has seemingly bolstered the dollar, adding pressure to crypto markets.
A Familiar Resistance
Bitcoin enthusiasts are no strangers to volatility, yet the recurring resistance at $110,000 is becoming a thorn in the side of many bullish traders. The psychological barrier appears reinforced by tangible market factors. According to crypto analyst Sarah Thompson, “This level has turned into a significant point of contention. It’s not just about breaking past $110K; it’s about sustaining momentum beyond that.” As explored in Bitcoin bulls gain edge, target $110K ahead of $20B monthly options expiry, traders are strategizing around key market events to push past this barrier.
The $112,000 resistance looms large, with traders eyeing it as the next major hurdle. Until Bitcoin can confidently break through this ceiling, the market remains vulnerable to corrections. In the meantime, several support levels offer a safety net, with key support identified around $105,000 and $102,000. For a deeper understanding of what needs to happen for Bitcoin to surpass this level, see Bitcoin analysts say this must happen for BTC price to break $112K.
Market Sentiments and Economic Influences
The latest report from the U.S. Bureau of Labor Statistics has revealed stronger-than-expected employment figures, sending ripples through financial markets. This data has implications for Bitcoin, as a rising dollar typically puts downward pressure on cryptocurrencies. “The dollar’s strength is a double-edged sword for Bitcoin,” explained financial strategist Mark Liu. “While it signifies economic recovery, it also diverts investment away from riskier assets like Bitcoin.”
Interestingly, this economic backdrop has not deterred institutional interest in cryptocurrencies. Despite the pause in Bitcoin’s rally, companies like MicroStrategy continue to accumulate Bitcoin, banking on long-term appreciation rather than short-term gains. This institutional faith underscores a broader belief in Bitcoin’s potential as a hedge against inflation and economic uncertainties.
Historical Context and Future Implications
Bitcoin’s current price action evokes memories of past struggles at key psychological thresholds. In 2021, Bitcoin faced a similar situation around the $60,000 mark, repeatedly testing and retreating before eventually plummeting. The lesson here? Market patience and strategic positioning are crucial. Traders are now contemplating whether history is poised to repeat itself or if Bitcoin will defy odds and surge past these barriers.
Looking ahead, the cryptocurrency market finds itself at a crossroads. Will Bitcoin break free from its current shackles, or are further dips on the horizon? Much depends on macroeconomic factors and investor sentiment in the coming months. Some experts caution that unless Bitcoin can muster a decisive breakout above $110,000, the market may witness increased volatility.
The Road Ahead
As July unfolds, all eyes are on Bitcoin’s next move. The cryptocurrency’s ability to navigate this tightrope will likely set the tone for the broader market. Traders and analysts alike are bracing for a bumpy ride. With key economic indicators due later this month, the stage is set for potential shifts in momentum—either a resounding breakthrough or another retracement to lower support levels.
In this dynamic landscape, one thing remains certain: Bitcoin’s journey is rarely straightforward. Its path is fraught with challenges, but also ripe with opportunities for those who can weather the storm. The coming weeks promise to be anything but dull, as investors hold their breath, waiting for the cryptocurrency giant to make its next move.
Source
This article is based on: Bitcoin's third flop at $110K puts bulls at risk: BTC price levels to watch
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Market Fatigue Grows: Could BTC Price Drop Below $100,000?
- Bitcoin holds steady as major catalysts align for breakout above $110K
- Why Bitcoin Price Might Drop Below $105,000 in the Coming Days
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
