Bitcoin Tests Breakout Zone as $110K Target Draws Closer

Bitcoin shows strong momentum above $108K but needs a weekly close to confirm breakout as past attempts failed to hold.

Smart money is quietly accumulating as BTC holds steady above major support levels, signaling a bullish setup for further gains.

Traders eye $110K resistance while keeping risk in check, with exchange outflows pointing to long-term holding behavior.

Bitcoin is flashing renewed strength as it trades above $108,000, sparking excitement among traders. The world’s largest cryptocurrency is now attempting a breakout from its broader consolidation range. However, according to analyst Daan Crypto Trades, BTC has been at this point several times before. He advises traders to wait for a confirmed weekly close above this zone to avoid getting caught in another false breakout. Despite this caution, price action remains solid. Bitcoin is holding firm near $108,840 with low volatility, suggesting the market is preparing for a major move.

Besides, technical charts highlight that BTC has built strong support at the $108,836 level. This area, once a resistance zone, is now acting as a demand pocket. Additionally, the mid-range level near $99,658 continues to offer key support. Hence, any dip below this mark could lead to short-term selling pressure. For now, smart money appears to be accumulating during this low-volatility phase.

Technicals Show Strong Uptrend

From a technical perspective, Bitcoin has rebounded 20% from the range low of $90,858. This shows significant bullish momentum. Moreover, BTC continues to trade above all major moving averages, which adds to the confidence in its uptrend. Volume data also supports the bulls. Institutional interest remains strong, as reflected in sustained inflows and a healthy perpetual inverse swap market. Besides, balanced funding rates signal that there’s no excessive leverage in the system right now.

Furthermore, the three-day chart structure reveals clear higher highs and higher lows. This confirms the bullish structure. Momentum traders are also entering long positions around $108,000. Consequently, Bitcoin could soon challenge the key resistance between $110,000 and $112,000.

Caution as Bulls Eye New Highs

Despite the bullish outlook, traders must remain cautious. Psychological resistance at $110,000 could trigger profit-taking. Moreover, external factors like macro news could spark volatility. Hence, risk management becomes crucial. Proper position sizing is key at this stage. Additionally, Bitcoin’s steady exchange outflows show investors prefer holding over trading. This trend contributes to a supply squeeze that may fuel further gains.

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