Bitcoin's Price Stagnation at $108,000 Causes 3.1% Drop in 24 Hours

Bitcoin’s recent difficulty in surpassing the $109,000 mark has led to volatility and significant declines within the altcoin market. Since the U.S. elections, the crypto community has observed little momentum in altcoins. Compounding factors such as global trade disputes and fears of nuclear conflict have perpetuated a challenging market atmosphere over the last 6-7 months.

Interest rates are anticipated to decrease in September, and potential resolutions to tariff issues may occur by mid-month. From July 4-9, discussions about tariffs are underway, and President Trump might prepare a new ultimatum to the EU just before Independence Day. Amid this backdrop, the altcoin market stands at a pivotal moment, as investors expect a profound change, drawing parallels to the bottoming out observed during the downturn.

Bitcoin dominance in the cryptocurrency market has surged, with its share of the total market value of cryptoassets climbing by nine percentage points this year to 64%, the highest since January 2021. This shift has had a significant impact on the altcoin market, as Bitcoin's price movements often dictate the direction of other cryptocurrencies. The OPEC+ meeting, which impacts crude oil prices, has also influenced Bitcoin and altcoin prices. Higher oil prices can lead to inflation, potentially pushing the Federal Reserve to adjust interest rates, which in turn affects the broader market, including cryptocurrencies.

Bitcoin's price has been hovering near $108,000, within a key Smart Money Concepts (SMC) supply zone, causing some stalling in its price movement. This period of stagnation is unprecedented, marking the longest sideways grind in Bitcoin's history. The crypto market has been holding above the key $3 trillion breakout zone, with potential for a blow-off top near $5 trillion. However, the escalating rivalry between Elon Musk and Donald Trump has added volatility to the market, leading to a 3.1% drop in 24 hours.

The Federal Reserve's decision to hold interest rates steady has triggered a sell-off in both Bitcoin and altcoins, exacerbated by rising geopolitical tensions. This broader market fear has led to a decline in the prices of these digital assets. Despite this, Bitcoin's network activity signals a calm before the next significant move. The cryptocurrency is currently at $106,569, with a 30-day average of $104,200 and a 90-day average of $98,500. Over the past year, the 365-day average sits at $85,000, indicating a substantial increase in its value.

Bitcoin's current position is critical, with support levels holding firm at $100,000, secondary support at $95,000, and a weaker floor at $90,000. On the upside, resistance is strong at $110,000, with further barriers at $115,000 and $120,000. The Relative Strength Index (RSI) is currently at 55, indicating neither overbought nor oversold conditions. The Moving Average Convergence Divergence (MACD) shows a slight bullish crossover, hinting at potential upward momentum.

Macroeconomic conditions, such as inflation and interest rates, are creating uncertainty in the market. The Federal Reserve's hints at rate hikes could dampen risk appetite for assets like Bitcoin. However, institutional interest remains robust, with major funds accumulating BTC at these levels, which could provide a floor against major drops. The regulatory landscape also plays a significant role, with some regions pushing crypto-friendly policies while others are tightening regulations.

Analysts are divided on Bitcoin's next move. Some predict a breakout above $115,000 by the end of the year, driven by renewed institutional buying and positive regulatory news. Others foresee a drop to $90,000 within the next 30 days due to macroeconomic headwinds. Crypto strategist Sarah Thompson from Galaxy Digital shared that Bitcoin could go either way, but the $100,000 support level is crucial. If it holds, we might see $120,000 by year-end. If not, $85,000 isn't out of the question.

Historically, Bitcoin consolidated around $60,000 for weeks before a massive correction in 2021. Post its November peak of $69,000, macro factors like rising interest rates and inflation fears triggered a sell-off, dropping BTC to $33,000 by January 2022. Today's setup isn't identical, but the parallels are worth noting. If history repeats, a bearish scenario could play out. However, if adoption trends continue to drive demand, we might be on the cusp of a different outcome.

Based on current data and market sentiment, there are three possible outcomes for Bitcoin over the next 30 to 90 days. A bullish scenario could see Bitcoin break out above $110,000, targeting $120,000 within 90 days. A neutral scenario would see the price consolidate between $95,000 and $110,000. A bearish scenario could see a correction below $90,000, targeting $85,000 within 30 days.

For investors, it's crucial to watch key levels, monitor news flow, assess risk tolerance, and diversify thoughtfully. Bitcoin's movement will impact altcoins, but not all equally. Ethereum's upcoming upgrades could provide some insulation if BTC dips. The risks are real, but the opportunity is just as significant. If institutional demand surges, we could see new all-time highs by year-end. It's a tightrope, and where you stand depends on your strategy.

In the short term, Bitcoin's next move will set the tone for the rest of the year. A breakout could reignite retail FOMO, driving prices higher across the board. But a crash might delay the next bull cycle. Long term, adoption is growing, and with halving cycles historically boosting prices, the fundamentals remain strong. The question is timing. Are we in for a bumpy ride before the next big rally?

Bitcoin's supply in profit has surged from 87% to 98% in just a few days, with about 96.7% of BTC currently in profit. This strong indicator suggests that a significant portion of Bitcoin holders are in a profitable position, which could support the price in the event of a market downturn. The price of Bitcoin has delivered strong performance and hit a new record high in the second quarter of 2025, further solidifying its position as the leading cryptocurrency.