- Bitcoin hovers near a key resistance level at $110,200, sparking hopes for a breakout.
- RSI shows mild bullish signals, but weakening MACD momentum limits breakout odds.
- A daily close above $110K could trigger a rally toward the $113K–$118K target zone.
On July 4, Bitcoin’s price hovered near the major resistance level of $110,200, sparking anticipation of a possible breakout. The level has acted as resistance multiple times in recent months, making it a key point for short-term trend confirmation. At press time, Bitcoin price is trading near $109,155, just below the critical resistance level.
Analyst Marzell emphasized that a daily close above $110,200 could confirm a bullish continuation. Technical patterns, recent volume trends, and indicator signals suggest that Bitcoin is approaching a pivotal moment.
Bitcoin Price Tests Resistance Between $110,200 and $110,700
The $110,200–$110,700 range has served as a ceiling for Bitcoin price movements over the past two months. The market reached a daily high of $110,039 on July 4, but then it started to decline. This area has created a horizontal resistance zone that coincides with historical rejection zones across May and June.
The recent daily price action also showed that bulls had succeeded in driving BTC above the June low of $98,240.8. The upward trend has been maintained with bullish pressure and higher lows once again. Nonetheless, there are several rejections close to 110K, indicative of strong sell-side liquidity. The structure is marked by an ascending triangle, which in most cases is a continuation pattern. However, confirmation could be achieved with a close above the resistance.
Volume still remains crucial. The recent rise to a daily high was not accompanied by high volume, indicating that buyers are cautious. If Bitcoin doesn’t close above this level, it could fall back toward the $108,000–$106,000 support range.
Indicators Suggest Cautious Optimism for Breakout Continuation
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both indicate a slightly bullish trend. The RSI is currently at 53.86, which is above the midpoint but below 60. This suggests that momentum is improving, but not strong enough yet to confirm a breakout.
Meanwhile, the MACD line 506.8 is below the signal line at 518.6, and the rising red histogram indicates that momentum is waning. This divergence suggests caution, as the current upward move may lack the strength needed for a sustained breakout. Traders are watching for a bullish crossover to confirm renewed buying pressure.
Related: Robert Kiyosaki Buys Bitcoin, Prefers Risk Over Regret
$113K to $118K in Sight if Breakout Holds Above Resistance
If Bitcoin closes above $110,200 and successfully retests the zone, the path toward $113K—$118K opens up. This target aligns with the 1.618 Fibonacci extension from the recent rally, suggesting this level may act as a short-term resistance cap.
A rejection would likely resume the patterns towards the $ 108K—$104K area, where it has been quite supportive during earlier cycles. Market participants are now waiting for the daily price action to confirm whether the structure will form a bullish breakout or revert back to trading within the consolidation range.
