Bitcoin Surges 10% Breaking $110K Resistance

Bitcoin has recently broken through a significant resistance level within its ascending channel, marking a notable shift in its price structure. The cryptocurrency has surged above the $108K–$110K resistance zone, indicating a potential move towards the channel’s upper boundary, which ranges from $150K to $170K. This breakout is supported by strong volume and momentum, suggesting that bullish sentiment is driving the current price movement.

The breakout candle, which shows strength and is backed by increased momentum, implies that buyers have taken control of the market. For the bullish scenario to remain valid, Bitcoin must now hold above the $108K–$110K breakout zone and convert it into support. If this support holds, the next logical target for Bitcoin would be the upper boundary of the channel, which aligns with the $150K–$170K range.

In addition to the price breakout, the weekly Relative Strength Index (RSI) is approaching a long-standing downtrend resistance. This RSI level has acted as a ceiling since early 2024, and a breakout above it would mark a significant shift in momentum strength. A decisive RSI breakout could invalidate the bearish divergence that has limited prior rallies, potentially attracting renewed interest from institutional investors and momentum traders seeking confirmation of trend strength.

The structure of the breakout, combined with the RSI behavior, currently supports the case for further upward movement. The breakout candle has engulfed several prior weekly closes, suggesting growing strength in price direction. However, for the breakout to be sustainable, Bitcoin must defend the $108K–$110K zone. Any drop below this level may signal a false breakout and trap late buyers. But with momentum building and the RSI nearing its own breakout point, the setup continues to favor a climb toward Bitcoin’s long-term price targets.