Bitcoin Breaks $109,000 Resistance Twice This Month

Bitcoin has recently broken through a significant resistance level of $109,000, marking the second time this month that it has surpassed this threshold. The first breakout occurred on July 2nd, followed by a brief rally and a minor pullback before resuming its upward trajectory. This movement has kept bullish momentum alive, with key support zones holding firm, particularly around $106,300. If Bitcoin can maintain its position above this level, there is a strong possibility that it will continue to climb.

However, the current market dynamics present a unique challenge. Market veteran Willy Woo highlights that the market is now in a late-stage bull market zone, characterized by high risk and reduced liquidity. Unlike previous cycles, the current market is more macro-driven and heavily influenced by institutional participation. This shift has altered the traditional dynamics of the crypto market, making it feel "a little flat."

One of the primary reasons for this perceived flatness is the significant amount of capital and liquidity that has been drained from the market by publicly traded treasury companies. These firms sell their Bitcoin holdings to purchase shares in Bitcoin-holding companies, which then use the proceeds to buy more Bitcoin for their own treasuries. This inefficient loop has siphoned off some of the excitement and volatility typically associated with the crypto market, contributing to the current sense of stagnation.

Despite the slower pace, Woo and his research team anticipate that altcoins will eventually experience their own rally. They predict a typical rotation where capital flows from Bitcoin into larger altcoins such as Ethereum, Solana, and BNB, followed by mid-cap tokens, and finally into small-cap, high-risk altcoins towards the end of the bull run. This rotation is a natural part of market behavior, but the involvement of large institutions may temper expectations for the speed and magnitude of these movements. Interestingly, Woo has chosen not to participate in the altcoin market this time around, reflecting a cautious approach to the current environment.