Bitcoin Drops 0.5% Below $107,000 as Resistance Holds

Bitcoin has experienced a significant decline, falling below the $107,000 mark after failing to surpass key resistance levels for the second time in less than 48 hours. This drop indicates a loss of momentum for bulls, particularly around the $107,500 zone, which has consistently capped upward movements and signaled increasing market uncertainty.

The latest decline saw Bitcoin retreat to approximately $106,970 after briefly testing the $107,500 level. This price point has become a significant resistance level, aligning with the upper Bollinger Band and short-term exponential moving averages on the 4-hour chart. Buyers were unable to sustain their positions in this zone, allowing sellers to take control.

Currently, Bitcoin is trading below the resistance zone between $108,000 and $110,500, which includes key Fibonacci retracement levels and has acted as a ceiling during the recent rally. The market's bullish momentum appears to be waning, as indicated by the failure to break below the 0.618 Fibonacci support at $105,889.

On the daily chart, bearish indications are emerging. The Supertrend has reversed to a sell signal at $106,450, and the Parabolic SAR has produced a dot above the price, signaling downward pressure. Additionally, the Ichimoku cloud with a 30-minute interval indicates that Bitcoin is within the cloud and trading below the Tenkan and Kijun lines, suggesting short-term indecision.

Momentum continues to weaken as a bearish crossover on the Stoch RSI has emerged from the overbought zone, further supporting a declining outlook. Over $9.6 million in long positions were liquidated on July 1, adding to the bearish sentiment and allowing bears to regain control.

Despite the decline, Bitcoin's broader trend remains functional. On the 4-hour chart, the lows are rising above the bottom on June 24 at $101,900, and the internal trendline is maintained. However, the recurring rejection of levels around $108,000 creates a fear of a stronger pullback if support around $105,500 is broken.

The converging Bollinger Bands on the 4-hour chart indicate a potential break in the future. A closure above $108,500 daily could revive the bull trend towards $110,500 and $118,000. Conversely, if Bitcoin loses the $105,500 support, it could potentially drop to lower levels near or below $103,200 and even $101,250 in the short term.

Bitcoin's inability to sustain above $107,000 is a concerning sign, as resistance is growing and bearish signals are accumulating. As buyers fail to overcome the main resistance, the market is edging closer to a steeper decline into the following trading day. Traders are now closely watching the $105,500 support level to gauge the future direction of the market.