Bitcoin Tests Critical $107K–$110K Support as Traders Brace for Potential Breakdown

Bitcoin (BTC) continues to hover near a key inflection point between $107,000 and $110,000, a zone that could determine the next major market direction. After Friday’s steep decline, Bitcoin’s recovery has remained weak, leaving prices vulnerable to further downside pressure.

Following last week’s sell-off to nearly $105,000, BTC briefly rebounded to $116,000 before slipping back toward the $110,000 level. Technical indicators suggest mounting bearish momentum, with price action now consolidating just above a vital support zone.

The $107,000–$110,000 range represents a crucial technical region defined by intraday highs from December–January and lows from September, signaling an ongoing tug-of-war between buyers and sellers. Adding to its importance, the 200-day simple moving average (SMA) currently sits near $107,500, reinforcing the area’s significance.

If this support fails, analysts warn of a deeper pullback. The next notable level lies near $98,330, the swing low from June 22, followed by the lower boundary of Bitcoin’s ascending channel around $82,000.

Warning Signs of a Potential Sell-Off

Recent movements within a long-term ascending channel—formed by connecting higher lows from October 2023 and August 2024—indicate that Bitcoin may be entering an overextended phase. Each time BTC has pushed above the upper boundary of this channel, gains have been short-lived, with swift reversals hinting at buyer fatigue.

The pattern mirrors past instances, such as the December–January period, when repeated failures to hold above resistance ultimately led to a sharp correction down to $75,000.

Given these technical signals, a deeper correction cannot be ruled out. However, if bulls manage to defend the $107K–$110K zone and spark a rebound above $116,000, it could invalidate the bearish structure and set the stage for a renewed push toward record highs.

For now, all eyes remain on whether Bitcoin can hold the line at this critical support threshold—a level likely to define the market’s next decisive move.