Bitcoin's Bullish Trend Faces $110,000 Resistance After $650 Billion Profit Taking

Bitcoin's price has been a subject of intense scrutiny, with bullish sentiment driving expectations towards the $110,000 mark. The convergence of the 50, 100, and 200-day Simple Moving Averages (SMAs) below the current price indicates a sustained bullish trend. However, the momentum above $110,000 has yet to materialize, suggesting a cautious approach from investors.

Recent profit-taking, amounting to over $650 billion, has slowed Bitcoin's momentum. This profit-taking, coupled with weakening volume, has created a temporary snag in the upward trajectory. Despite this, the broader trend remains bullish, with key resistance levels at $110,200 and $112,000. A break above these levels could propel Bitcoin towards even higher targets, potentially reaching $124,000 and $131,800.

Technical analysis reveals that long positions are at a 2025 high, with bulls betting on a new high of $125,000 in July. This optimism is supported by the potential for a 5% rise this week, with a target range of $110,000–$112,000, provided bulls maintain momentum above the $105,000 support zone. The descending resistance breakout and the retesting of the $110K–$112K zone with bullish momentum further underscore the potential for upward movement.

However, analysts caution that the $110,200 ceiling has held firm, and bulls are approaching this resistance with caution. The lack of momentum above $110,000 and the recent profit-taking highlight the need for sustained bullish pressure to achieve the $110,000 target. The next few weeks will be crucial in determining whether Bitcoin can overcome these resistance levels and continue its upward trajectory.