- Bitcoin is testing key resistance at $110K, with technical indicators signaling caution despite strong fundamentals.
- A breakout above $110K–$114K could trigger a run to $120K–$143K, but failure to hold $106K risks a deeper pullback.
- Ethereum surges past $2,580, fueled by bullish sentiment and forming a potential cup-and-handle breakout setup.
- ETH must clear $2,775 resistance to target $3,500+, while $2,120 remains critical support.
Bitcoin Bulls Eye $110K Breakout, But Technical Headwinds Persist
Bitcoin (BTC) is flirting with a critical resistance zone at $110,000, following a strong June close near all-time highs. Bulls are attempting to sustain the rally, but technical signals suggest momentum could be waning.
Price action has tightened into a consolidation range between $106,000 and $110,000, repeatedly rejecting at intraday highs around $110,500. While the 20-day and 50-day EMAs remain in bullish territory, indicators such as the Relative Strength Index (RSI) (~57) and a bearish MACD crossover are flashing caution, hinting at a possible short-term pullback.
For Bitcoin to unlock further upside toward $120,000, analysts emphasize the need for a breakout above the $110K–$114K range, preferably with strong daily close confirmation and rising trading volumes. On the downside, losing the $106K support could open the door for a deeper correction.
Despite short-term volatility, Bitcoin’s long-term outlook remains robust, underpinned by institutional ETF flows, improving U.S. crypto regulation clarity, and supportive macroeconomic conditions. Some market strategists forecast a potential 25% surge toward $143,000 if bulls decisively clear resistance.
Ethereum Builds Momentum Above $2,580, Eyes $2,775 Breakout
Ethereum (ETH) is also regaining strength, rising over 6% in the last 24 hours to trade above $2,580. The rally is buoyed by broader bullish sentiment in equities and crypto, following stronger-than-expected U.S. jobs data. Trading volumes spiked 47%, hinting at accumulation around the $2,600 zone.
However, ETH faces tough resistance between $2,600 and $2,775, with intraday highs capped near $2,630. Technically, Ethereum shows encouraging signs, including a “golden cross”—a bullish pattern where the 50-day MA crosses above the 200-day MA—and a developing cup-and-handle formation, which could target $4,100 if confirmed.
To confirm the uptrend, ETH must clear $2,775 resistance with volume confirmation, opening the path to $3,025, $3,500, and potentially higher levels. Failure to do so risks a retest of key support at $2,120, where a breakdown could invalidate the bullish setup.
Indicators present a mixed picture: the RSI sits neutral around 47, the MACD shows a weak bullish crossover, and Bitget’s sentiment rating lists ETH as a “Strong Buy.”
Keep Eyes on Key Price Bands in July
Both Bitcoin and Ethereum are at crucial junctures. For BTC, watch the $106K–$110K range closely— a breakout could ignite a major rally, while a breakdown risks deeper losses. For ETH, clearing $2,775 is pivotal for continued upside, while support at $2,120 remains the line in the sand.
As always, traders should pair technical insights with macro fundamentals to navigate July’s crypto volatility.
