Bitcoin Pulls Back 1.8% After Hitting $110,000 Resistance

Bitcoin (BTC) has encountered resistance at the $110,000 mark, leading to a pullback near $108,000. This resistance has attracted profit-booking by short-term traders, causing a temporary decline in the price. Analyst Daan Crypto Trades noted that a close above $110,000 would be beneficial for Bitcoin, but a drop below $108,000 could deepen the correction. The price of Bitcoin has been closely watched as it approaches its all-time high, with some analysts predicting that US President Donald Trump’s “Big Beautiful Bill” could act as a catalyst to push the price above this level. Prediction service Kalshi expects the US national debt to reach $40 trillion in 2025, a significant increase from $23.2 trillion in 2020. Historical data shows that increases in US borrowing have boosted Bitcoin’s price, such as the 38% surge after Trump signed a COVID-19 spending bill in late 2020.

Despite the bullish sentiment, some analysts caution that the bull market may only run for two or three more months if Bitcoin follows the 2020 pattern. Rekt Capital, a crypto analyst, warned that the bull market could be nearing its end. However, there is still potential for Bitcoin to bounce off its support levels, pulling select altcoins higher. The charts of the top five cryptocurrencies, including BNB, SOL, LINK, and AAVE, show promise and could benefit from a Bitcoin rebound.

BNB (BNB) rebounded off the breakout level on Wednesday and broke above the 50-day SMA ($654). The bears are trying to pull the price below the moving averages, but the bulls are expected to defend the level. If the price turns up from the moving averages and rises above $665, the BNB/USDT pair could rally to $675. Sellers will again try to halt the up move at $675, but if the bulls prevail, the pair may reach $698. This optimistic view will be negated in the near term if the price breaks below the moving averages and re-enters the descending channel, signaling that the markets have rejected the breakout above the channel.

Solana (SOL) has faced repeated failures to clear the $159 hurdle, leading to a pullback below the 20-day EMA ($148). The flattish 20-day EMA and the RSI just below the midpoint signal a balance between supply and demand. Buyers will be back in the driver’s seat if they propel the SOL/USDT pair above $159, clearing the path for a rally to $168 and then to $185. Conversely, a close below the 20-day SMA suggests the bears have overpowered the bulls, and the pair may slump to the crucial support at $140. This is an essential level for the bulls to defend because a break below it may sink the pair to $126.

Chainlink (LINK) rose above the 20-day EMA ($13.32) on Wednesday, but the bulls could not pierce the 50-day SMA ($14.09) on Thursday, suggesting that bears are active at higher levels. The LINK/USDT pair could drop to $12.73, which is an important level to watch out for. If the price rebounds off $12.73 with strength, the bulls will again try to propel the pair above the 50-day SMA. If they manage to do that, the pair could surge to $15.66 and thereafter to $18. Conversely, if the price extends its slide and breaks below $12.73, it suggests that the bears are trying to seize control, and a break and close below $12.73 could sink the pair to $11.

Aave (AAVE) is facing resistance at $286, but a positive sign is that the bulls have not allowed the price to dip below the moving averages. The upsloping moving averages signal an advantage to buyers, but the RSI near the midpoint indicates the bullish momentum is weakening. If the price rebounds off the moving averages with strength, the bulls will try to drive the AAVE/USDT pair above $286. If they can pull it off, the pair may jump to $325. This positive view will be invalidated if the price continues to fall and breaks below the moving averages, indicating that the bulls have given up. The pair may dip to $240 and subsequently to $220.

In summary, while Bitcoin faces resistance at $110,000, the potential for a rebound could pull select altcoins higher. BNB, SOL, LINK, and AAVE show promise with their respective charts indicating potential for upward movement. However, the overall market sentiment remains cautious, with analysts warning of potential corrections and the end of the bull market. Investors should conduct their own research and be prepared for the inherent risks in the cryptocurrency market.