Bitcoin Faces Resistance at $108K–$110K Despite Powell-Induced Rally
The post Bitcoin Faces Resistance at $108K–$110K Despite Powell-Induced Rally appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) surged following Federal Reserve Chair Jerome Powell’s comments, but faces strong resistance between $108,000 and $110,000, according to Glassnode co-founders Yann Allemann and Jan Happel via their Negentropic X account. While Powell’s remarks helped ease market pressure, analysts caution that weakening liquidity and slowing network growth could limit further upside. Powell’s Impact on Bitcoin’s Price Rally 📈 Bitcoin rose to $104K–$106K after Powell’s speech, signaling a relief rally.📊 Investors reacted positively to Powell’s stance, pushing BTC toward resistance levels.🏦 Federal Reserve’s rate policies remain a key factor, influencing BTC’s short-term movement. Despite the initial bullish momentum, Bitcoin now needs strong volume and momentum to break past $110K. Why Bitcoin Faces Resistance at $108K–$110K Key Challenges to Bitcoin’s Breakout: ⚠️ Weak Liquidity Levels – Market depth remains thin, limiting buy-side strength.📉 Slowing Network Growth – Bitcoin’s on-chain activity isn’t expanding fast enough to fuel a breakout.🚧 Technical Resistance – The $108K–$110K zone has strong sell pressure, requiring significant demand to overcome. For Bitcoin to break higher, buyers must step in with strong conviction. Can Bitcoin Overcome the $110K Barrier? 🚀 Bullish Scenario: If Bitcoin gains volume and breaks above $110K, it could target new highs.📉 Bearish Scenario: Failure to clear resistance could lead to a pullback, possibly retesting $100K–$102K.📊 Key Levels to Watch: $108K–$110K as resistance, $102K as support. Traders should monitor liquidity inflows, network growth, and macroeconomic trends. What’s Next for Bitcoin? 🏦 Fed Policy & Inflation Data Impact – Powell’s next statements could shape BTC’s trajectory.📊 Spot ETF Inflows & Institutional Demand – Continued inflows could support Bitcoin’s rally.🚀 Breakout Potential Above $110K? – A strong push past resistance could fuel another leg higher. Bitcoin’s short-term direction hinges on market momentum and key technical levels. FAQs Why is Bitcoin struggling at $108K–$110K?Weak liquidity, slowing network growth, and…
Filed under: News - @ February 2, 2025 5:18 pm