Bitcoin is once again at a pivotal point in its cycle, reclaiming the $110,000 level in a strong bullish move that reignites hopes of a fresh leg higher. After months of consolidation and volatility, the leading cryptocurrency is now testing critical resistance, with analysts watching closely for a breakout into price discovery. A move beyond current highs could mark the beginning of an expansive phase that drives broader market momentum. Top analyst Axel Adler shared new data underscoring renewed trader confidence. Following record spikes in open interest (OI) — with growth of 79% in spring 2024, 59% in autumn, and 36% in May — the last 30 days have seen a notable shift. OI change has moved from a negative -9% to a positive +5%, signaling that traders are once again building futures positions, albeit with more caution and less leverage than in past phases. This shift in derivatives positioning comes as macro conditions improve and risk appetite gradually returns to the crypto space. However, bulls will need a catalyst — whether technical or macroeconomic — to breach resistance and sustain a breakout. The coming days could define Bitcoin’s trajectory for the remainder of the quarter. Bulls Eye Breakout As Bitcoin Nears All-Time Highs Bitcoin is approaching a critical moment as it flirts with its $112,000 all-time high. With bullish momentum accelerating, many investors believe the market is preparing for a new expansive phase. However, as BTC trades near record levels, the risks of a failed breakout grow. Sentiment remains broadly positive, supported by rising equity markets and a reduction in macroeconomic uncertainty. Yet, analysts warn that unless Bitcoin decisively clears resistance soon, the probability of a correction into lower levels will increase. The US stock market hitting new all-time highs adds to the optimism, often acting as a tailwind for crypto. Still, a breakout above $112K will require more than technical strength — it needs a catalyst. Axel Adler points to the derivatives market for early signs of conviction. Open interest (OI) growth, which saw record spikes of 79% in spring 2024, 59% in autumn, and 36% in May, has now moved from -9% to +5% over the past 30 days. This shift suggests traders are cautiously re-entering the market, though with less aggressive leverage. Bears, meanwhile, are expected to defend the ATH zone. For bulls to succeed, a strong narrative — such as presidential support, dovish Fed signals, or macro triggers — may be necessary to awaken risk appetite and send Bitcoin decisively into price discovery. BTC Price Action: Near Breakout Point The 12-hour BTC/USDT chart shows Bitcoin attempting a critical breakout above the $109,300 resistance level. After multiple rejections in June and early July, BTC has once again surged, printing a strong candle that now flirts with price discovery just below the $112,000 all-time high. Momentum has shifted in favor of the bulls after a successful defense of the $103,600 support zone, which coincided with a bounce off the 100 and 50-day SMAs, currently converging around the $106,200 level. This moving average cluster acted as dynamic support, validating short-term bullish strength. Volume also increased slightly during the recent push, a positive signal after weeks of fading conviction. A clean and sustained break above $109,300 would open the path toward retesting ATHs and potentially entering a new expansive phase. However, traders should be cautious of potential fakeouts. This level has acted as a firm resistance for nearly two months, and a rejection could send BTC back toward the $106,000 support cluster or even the $103,600 level. For now, bulls hold the upper hand, but follow-through above resistance with rising volume will be key to confirm a true breakout and continuation toward new highs. Featured image from Dall-E, chart from TradingView

As Bitcoin (BTC) attempts to turn the $110,000 resistance into support, some analysts believe its price discovery rally has just started, forecasting new highs for the flagship crypto. Bitcoin Starts Second Price Discovery Uptrend Last week, Bitcoin’s momentum propelled its price to its new all-time high (ATH) of $111,814 before retracing to its current range. Over the weekend, Bitcoin confirmed its breakout into its second Price Discovery Uptrend, following its successful retest of the $104,500 mark as support. The cryptocurrency has been in a significant market recovery for over a month, rallying nearly 50% from April lows. Analyst Rekt Capital noted that BTC ended its downside deviation period and positioned itself for a retest of its key re-accumulation range during early May’s surge, which was successfully reclaimed and surpassed. The analyst considers that its new Price Discovery Uptrend has “only just begun,” as Bitcoin starts Week 2 of this phase. Rekt Capital highlighted that this cycle has been “a story of Re-Accumulation Ranges,” which signals that a new range will likely form after this Price Discovery. Meanwhile, history suggests a second Price Discovery Correction is ahead as Bitcoin transitions into its new Price Discovery Uptrend. During its future correction, BTC will likely retrace between 25%-35% “to produce yet another Downside Deviation below the Re-Accumulation Range Low (future orange circle) before resuming upside into a likely Price Discovery Uptrend 3.” In the meantime, “All Bitcoin needs to do is hold above the Re-accumulation Range High of $104,500” to continue its price discovery rally. $110,000 Breakout Next? Notably, the flagship crypto has been retesting the range high as support over the past two weeks, confirming the breakout. As such, dipping into the previous $92,000-$104,500 range’s upper zone could happen as “part of normal volatility.” Moreover, it turned another key resistance, the $102,500 mark, into support during this period, which it had previously been rejected from in January 2025. With these levels as support, Rekt Capital considers that only the December 2024 and January 2025 upwicks, at $108,353 and $109,588, stand in the way of additional Price Discovery. Trader Daan Crypto Trades noted that Bitcoin is “still strong but fighting around its previous all-time high from earlier this year.” He pointed out that price action looks “very choppy” in the lower timeframes, but it shouldn’t be concerning for investors if the price remains within its current range. Analyst MacroCRG affirmed that Bitcoin must officially reclaim the $110,000 level to continue its rally, as it marks the previous ATH and the Value Area High (VAH) from last week. “Acceptance above and we likely squeeze straight into price discovery again,” CRG stated. Currently, Bitcoin is retesting its Weekly opening of $109,004 as support, which could set the stage for a breakout above the $110,000 mark if held. Meanwhile, rejection from this area could send BTC price to the $106,000-$108,000 area. As of this writing, Bitcoin trades at $109,181, a 1.4% increase in the daily timeframe.