Bitcoin enthusiasts might want to brace themselves. As of July 4, 2025, the cryptocurrency giant is making waves again, aiming for unprecedented highs. However, there’s a catch. New analysis suggests that the $110,000 mark could be a stubborn ceiling due to bearish divergences evident across various time frames.
Unpacking the Divergences
Let’s dive into the nitty-gritty. The term “bearish divergence” is being tossed around a lot these days. It essentially refers to a situation where the asset’s price is rising, but key indicators – like the Relative Strength Index (RSI) – are leaning the other way. This divergence is what experts believe might be signaling trouble beneath Bitcoin’s seemingly bullish surface.
Analysts are sounding the alarm. “While the charts look promising at first glance, these divergences are a red flag,” noted crypto strategist, Emily Zhang, who has been closely tracking these trends over the past few months. “We might be witnessing a bull trap,” she added, pointing to historical instances where similar patterns led to sharp corrections. This sentiment echoes concerns highlighted in Bitcoin’s third flop at $110K puts bulls at risk, where analysts discuss the potential pitfalls at this critical price level.
Market Sentiment and Historical Echoes
Bitcoin’s price surge isn’t occurring in isolation. It’s a part of a broader crypto market rally, fueled by renewed institutional interest and regulatory clarity in key markets. Investors are buzzing with excitement, reminiscent of the 2021 bull run that saw Bitcoin break new ground. Yet, seasoned traders are cautious, recalling how previous bullish flares were followed by icy corrections.
The memory of Bitcoin’s roller-coaster journey is still fresh for many. Back in 2021, Bitcoin hit $64,000 before plummeting to approximately half that value within months. Such volatility is part and parcel of the crypto landscape, and it’s this unpredictability that keeps market participants on their toes.
A Crossroad for the Crypto King
Here’s where it gets interesting. If Bitcoin manages to break above the $110,000 barrier, it could signal a new era of price discovery. But, breaking through isn’t as simple as it sounds. The looming divergences have left many wondering whether the market has the momentum needed to sustain such heights. For further insights into why Bitcoin struggles to surpass its all-time highs, see Why can’t Bitcoin price break $112K all-time highs? BTC analysts explain.
Crypto analyst and veteran trader, Jake Thompson, shared his perspective: “The market is at a pivotal crossroad. Either we see a clean breakout above resistance, or there’s a substantial risk of retracement. It’s a classic case of market tug-of-war.”
Adding to the complexity, macroeconomic factors could play a significant role. Inflation rates, interest rate adjustments, and geopolitical tensions are all pieces of a larger puzzle influencing Bitcoin’s trajectory.
The Road Ahead
So, where does this leave us? The truth is, the future is as uncertain as it is exciting. Bitcoin’s chart patterns are raising eyebrows, but the underlying fundamentals remain robust. The digital asset is no stranger to defying conventional wisdom, after all.
Looking forward, the crypto community is divided. Optimists are betting on a breakthrough, citing ongoing technological advancements and increasing mainstream adoption. Skeptics, however, are urging caution, highlighting the need for a measured approach amidst the euphoria.
As Bitcoin flirts with the $110,000 resistance, market participants would do well to keep a watchful eye on both technical signals and broader economic indicators. One thing’s for sure: the coming months promise to be anything but dull.
While the charts may tell one story, the unpredictable nature of cryptocurrency markets means that anything is possible. As July unfolds, the crypto world waits with bated breath, eager to see whether the bulls can charge past the $110,000 mark or if the bears will have their day. Whether this rally is a genuine bull run or a sophisticated bull trap is a question only time will answer.
Source
This article is based on: Bitcoin price aims for new highs but ‘divergences’ set $110K as resistance
Further Reading
Deepen your understanding with these related articles:
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- Bitcoin holds steady as major catalysts align for breakout above $110K
- Bitcoin bulls gain edge, target $110K ahead of $20B monthly options expiry
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.
