Bitcoin’s Struggle Below $110,000

Key Points:

• Bitcoin’s attempts to dip below $110,000 face increasing overhead liquidity.
• Traders see signs that could reignite bullish momentum.
• Next week’s Consumer Price Index (CPI) report may create volatility.

Bitcoin (BTC) made a bid to surpass $110,000 on July 9th, coinciding with the Wall Street opening, but sellers were poised to hold prices steady.

Bitcoin Bulls Halt Just Short of $110,000

According to Cointelegraph Markets Pro and TradingView, Bitcoin reached as high as $109,777 on Bitstamp.

The trading pair has been largely confined to a narrow range, pinned down by the exchange’s order book liquidity, which became more pronounced during this phase.

Analytics from Coinglass revealed significant liquidity at around $108,500 and $110,500 for bids and asks, respectively.

In light of this, crypto enthusiasts are hopeful for a substantial push toward previous record highs.

“Most liquidity presents an opportunity. Stops beyond $110,000 seem risky,” noted a well-known trader. They suggested that if Bitcoin cracks the $110,000 barrier, the next target could be $130,000, a level that hasn’t been daily closed above since June 11th.

#bitcoin broke through the bullish flag, now retesting before a push higher. Clearing $110K sets sights on $130,000. Ready?

Another trader, Bitbull, highlighted that the relative strength index (RSI) data could be crucial in forecasting Bitcoin’s next move.

“The 3D RSI and price seem to indicate reverse head and shoulder patterns,” he observed, adding that a breakout would require either a 3D close above $110K or a 3D RSI above 70. “Then we might see an upward trend for about three to four weeks.”

Potential Volatility Triggers for Crypto

As the situation surrounding U.S. trade crime continues to evolve, analysts are eyeing potential volatility triggers for crypto and other risk assets.

In a recent bulletin from trading firm QCP Capital, they pointed to next week’s CPI data as a critical part of the ongoing inflation narrative in the U.S.

This could impact market sentiment regarding expectations for future Federal Reserve interest rate cuts.

“Last week’s strong job data has tempered some of the optimism regarding rate decreases,” they noted.

“The market’s forecast has shifted back to anticipating two cuts in 2025, down from 2.5.” The likelihood of cuts in July is nearly priced in.

QCP termed Bitcoin as “well bid,” noting the persistent weakness of the U.S. dollar and ongoing institutional interest despite a volatile macroeconomic backdrop.

“The trade tensions have reignited, contributing to more hawkish sentiments that could increase volatility,” they concluded.

“The macro catalysts are in place. Get ready.”

This article does not include investment advice or recommendations. All trading activities involve risk, and readers should conduct their own research before making decisions.