Bitcoin At $110,000: Why $BTC Must Break Out of This Level

Bitcoin is currently trading around the zone of $107,000 after bouncing up from a low of $99,000 earlier in the week, but its progress is being constrained just below a key resistance zone. Technical Analysis shows that the price of Bitcoin is beginning to coil into a wedge structure on the 1-hour chart, and cryptocurrency analyst Daan believes that a breakout from this pattern could determine whether it has enough strength to eventually surpass the recent all-time high. The Formation of a Wedge Preventing Bitcoin from Falling Below $108,000 Bitcoin has been consolidating in a descending wedge pattern over the past few days, as shown in the one-hour candlestick chart below. This consolidation comes after Bitcoin rejected the level above 108,000 dollars on July 26. Notably, this pattern has formed below the $108.351 level, near the previous all-time high and is a significant resistance point in the current range. The pattern reflects a tightening of price action, with lower highs forcing the price into a narrow range. Furthermore, the on-chain trading volume has remained relatively stable throughout this consolidation process, with no strong directional trend yet. According to Daan's analysis, although this setup could lead to a strong breakout, it still needs time to resolve. "It's quite bumpy," the analyst noted. The lack of market conviction is reflected in Bitcoin being continuously rejected just below the $108,000 level on multiple one-hour candlestick charts.

A Clear Change Above 110,000 USD Could Change Everything Although short-term moves are relatively quiet, the wedge pattern is building pressure. A confirmed breakout above the upper resistance line, especially with a decisive close above $108,000, could mean the beginning of a much larger move. This closing level will confirm more on larger time frames. Cryptocurrency analysts recommend scaling down to larger timeframes and waiting for a proper breakout in the zone of $108,000 to $110,000. A proper breakout of Bitcoin in this range will also have broader implications across the market and restore interest in altcoins. However, without this breakout, Bitcoin will be stuck in what analysts describe as "a major resistance level in a larger zone." In this scenario, the leading cryptocurrency will be at risk of another downward volatility, especially if the support at the lower boundary of the wedge is broken. As of the time of writing, Bitcoin is trading at around 107,447 dollars. Although the hourly price structure shows strength in recovering from the daily low near 106,200 dollars, Bitcoin speculators currently face narrowing price action. The wedge formation indicates that Bitcoin is preparing for its next big move, but whether it will rise or fall depends on how the price reacts to the wedge boundaries and the resistance line at 108,000 dollars.