Bitcoin News Today: Bitcoin's $107K Hurdle: Bulls vs. Bears in Crucial Supply Zone Showdown

Bitcoin's price action has sparked renewed debate over whether the cryptocurrency is poised for a rebound or a deeper decline, as technical indicators and on-chain data paint a mixed picture of market sentiment. The asset fell below $107,250 last week after failing to hold above a critical resistance level, reinforcing concerns that a "death cross" pattern-where the 50-day moving average crosses below the 200-day average-could soon materialize. This bearish signal, however, has historically proven unreliable, with previous instances in 2023 and 2024 failing to predict sustained downtrends.

Analysts at Glassnode argue that Bitcoin is currently "stuck in consolidation limbo," with buyers accumulating during dips but lacking the strength to break through a dense supply zone between $106,000 and $118,000.

This range, where many investors exit to lock in profits, acts as a natural barrier to upward momentum. "A sustained recovery will require renewed inflows strong enough to absorb this wave of distribution," the report notes, highlighting that while short-term accumulation is evident, broader bullish reversal remains unlikely without significant capital intervention.

The debate over whether the market is entering a bear phase hinges on technical indicators. The Relative Strength Index for Bitcoin and the broader crypto market shows oversold conditions, a pattern seen during prior mid-cycle corrections in 2021, 2023, and 2024. Meanwhile, the Moving Average Convergence Divergence (MACD) metric reveals a transition phase: while Bitcoin lingers in negative territory, over 58% of market assets exhibit positive momentum, suggesting the market is not yet in a full bear trend.

Key conditions could tip the scales. If Bitcoin remains below its 365-day moving average for four to six weeks-a historical trigger for bear markets-or if long-term holders offload over 1 million BTC within 60 days, a prolonged downturn may follow. For now, the $100,000 support level and a decisive break above $107,250 remain pivotal for bulls seeking to reestablish an upward trajectory.