Bitcoin Faces Key Test: What Happens If $107K–$110K Support Fails?

Bitcoin Holds Near Critical $107K–$110K Support as Market Awaits Next Major Move

Bitcoin (BTC) is treading water near a key support zone between $107,000 and $110,000, a level that could dictate the cryptocurrency’s next major trend. After last Friday’s sharp sell-off, Bitcoin’s rebound has been modest, keeping prices uncomfortably close to a make-or-break range.

BTC briefly rallied to $116,000 after plunging to nearly $105,000 during the Friday crash, but momentum quickly faded as bearish signals emerged across multiple technical indicators. The $107K–$110K zone has become a critical battleground for bulls and bears, with historical data showing it coincides with intraday highs from December–January and lows from September. The 200-day simple moving average (SMA), now hovering around $107,500, adds further weight to the area’s importance.

If this level fails to hold, analysts warn of a potential deeper retracement. The first major downside target would be around $98,330, the swing low from June 22, followed by the lower boundary of the ascending channel near $82,000.

Technical Pressure Mounts

Bitcoin’s recent price structure remains within a bullish ascending channel, defined by higher lows since October 2023 and August 2024. However, repeated tests of the channel’s upper boundary have shown signs of exhaustion, with each breakout above resistance quickly reversing — a pattern that often precedes corrective phases.

This setup echoes past behavior, notably during the December–January period, when multiple failed attempts to hold above resistance eventually led to a steep decline toward $75,000.

While Bitcoin’s broader uptrend since 2023 remains intact, the current consolidation suggests growing uncertainty. A decisive break below $107K would likely confirm bearish dominance, while a rebound above $116K could reassert bullish control and open the path toward retesting record highs.

For now, traders are closely watching whether Bitcoin’s key support zone can withstand the pressure—a move that may define the tone of the market in the weeks ahead.

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