Bitcoin Pulls Back Near $108,000 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 is currently being supported by moving averages, and a rebound from these levels could improve sentiment and push the price higher.

Some analysts are optimistic that US President Donald Trump’s “Big Beautiful Bill” could act as a catalyst to push the price of Bitcoin above its all-time high. 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. However, crypto analyst Rekt Capital cautioned that the bull market may only run for two or three more months if Bitcoin follows the 2020 pattern.

Despite the resistance at $110,000, other cryptocurrencies such as BNB, SOL, LINK, and AAVE show promise. BNB rebounded off the breakout level and broke above the 50-day SMA, with bulls 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 and then to $698. However, a break below the moving averages could signal a rejection of 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. The flattish 20-day EMA and the RSI just below the midpoint signal a balance between supply and demand. If buyers propel the SOL/USDT pair above $159, it could rally to $168 and then to $185. Conversely, a close below the 20-day SMA could suggest that bears have overpowered the bulls, with the pair slumping to the crucial support at $140.

Chainlink (LINK) rose above the 20-day EMA but failed to pierce the 50-day SMA, suggesting that bears are active at higher levels. The LINK/USDT pair could drop to $12.73, and if the price rebounds off this level with strength, the bulls will 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. However, a break and close below $12.73 could sink the pair to $11.

Aave (AAVE) is facing resistance at $286, but 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 that 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. However, a break below the moving averages could indicate that the bulls have given up, with the pair dipping to $240 and subsequently to $220.

In summary, while Bitcoin faces resistance at $110,000, other cryptocurrencies such as BNB, SOL, LINK, and AAVE show promise. A rebound in Bitcoin from the moving averages could improve sentiment and push these altcoins higher. However, a break below key support levels could signal a deeper correction in the market. Investors should conduct their own research and be aware of the risks involved in cryptocurrency trading.