Bitcoin Holds Above $106,500, Eyes $110,545 Breakout for New Highs

Bitcoin's price has been holding steady above $106,500, a level that has been confirmed by multiple rebounds since March. This stability has led analysts to identify $110,545 as a critical breakout level that, if surpassed, could propel Bitcoin into a new phase of price discovery. The monthly support zones at $102,464 and $104,685 are seen as foundational for a potential rally to fresh highs.

Bitcoin's price formation has shown a pattern of consolidation at high levels, above important technical and on-chain support areas. This trend suggests a continuation of a long-term bullish trajectory, driven by institutional purchases and the rotation of holders. The recent positive momentum has pushed Bitcoin near the $111,000 mark, raising questions about the possibility of a new peak in the near future. The last breakout above historical resistances positioned Bitcoin to start a second round of discovery phase.

Technical analyst Rekt Capital notes that Bitcoin has maintained its position above the $104,400 Range High, a level that previously acted as resistance in the ReAccumulation range. Over the past seven weeks, Bitcoin has retested this zone multiple times, indicating that it has now turned into a structural support. Weekly and monthly chart data confirm the presence of confluence zones around $102,464, $104,685, and $107,244. These higher-timeframe supports are crucial for sustaining the asset’s potential second price discovery uptrend.

On the monthly chart, Bitcoin recently closed above the $102,464 Range High and followed it with a clean retest, leading to July’s upside candle formation. The ability of Bitcoin to hold this zone has renewed trader confidence. Analysts believe that maintaining support across this stacked region could serve as a foundation for a new high above $111,000.

Analyst Michaël van de Poppe observes that Bitcoin's price action on the 4-hour chart presents an ideal setup for a breakout. The asset is trading just below $110,500, a resistance that has historically capped rallies. A recent liquidity sweep above $110,545 triggered stop-loss orders, followed by a clean retest of the $109,000–$110,000 area. This trend indicates that traders are actively defending these levels, while buyers continue positioning for a breakout. These zones now act as key re-entry levels for institutional and retail spot buyers. With market structure showing liquidity buildup, analysts have outlined that clearing the $110,545 may result in breaking new all-time highs.

Glassnode’s Long-Term Holder Spending Binary Indicator reveals that some seasoned holders have begun taking profits. This trend followed a peak in the long-term holder supply metric and a decline afterward, signaling rotation rather than panic selling. In past cycles, similar reductions occurred just before temporary cooling phases. This shift may be driven by Bitcoin price gains since early March. These profit realizations may not signal a reversal but show that strategic exits are happening in this cycle. Ali Martinez emphasized that these trends align with bullish structures, provided Bitcoin price remains above key support.

Bitcoin is currently locked in a short-term consolidation range between $104,400 and $111,000. The most recent weekly close marked Bitcoin’s highest on record, narrowly above the previous final resistance. This suggested an early stage breakout, although a clean retest may involve volatility. More so, the invalidation of a previous lower high has now turned into fresh support, reinforcing the bullish setup. If Bitcoin manages a sustained break above $110,545 with volume, traders expect momentum to carry the asset toward new all-time highs.

Institutional adoption of Bitcoin has been on the rise, with companies like Metaplanet in Japan purchasing significant amounts of Bitcoin. Metaplanet recently acquired 2,205 BTC worth $238.7 million, bringing its total holdings to over 15,555 BTC. The company aims to become the fourth-largest corporate holder of Bitcoin by the end of the year, further bolstering institutional interest in the cryptocurrency.