Bitcoin Struggles at $110,000 Resistance, Faces 17.35% Volume Surge

Bitcoin is currently facing a critical juncture as it struggles to break above the $110,000 resistance level, consolidating within a descending channel. This price action forms a classic bull flag pattern, which is typically seen before an extension of the trend. However, the recent intraday losses and the failure to surpass the upper resistance of the channel indicate increasing uncertainty in the market.

On June 30, Bitcoin slipped to $107,626.10, highlighting the market's reluctance to push higher despite significant trading volumes. The price of Bitcoin is currently trading around $108,396, suggesting a risk of local exhaustion after a low-scaled bullish trend bid. The bullish sentiment prevailing in the longer time frame is countered by a strong downward arrow on the chart, signaling bearish sentiment towards a possible retest of the lower line of the channel, which is close to the psychologically important mark of $100,000. A fall below this level could lead to additional sell-offs.

The current technical setup poses a critical inflection point for Bitcoin traders. A breakout above the flag would signal the continuation of bullish activity, while a breakdown would turn market sentiments towards the next major leg down. Investors are urged to closely watch the lower limit of this flag pattern in the forthcoming sessions. The trading volume rose 17.35% within the last 24 hours, indicating active market participation with price fluctuations observed. As the number of circulating Bitcoins approaches 21 million, the market capitalization of Bitcoin is now up to $2.14 trillion, reflecting a serious attitude in the distribution before investors can receive the message about the direction of the trend.