Bitcoin Price Forecast: BTC Encounters Selling Pressure at $110K – Is a New ATH Possible?

The top crypto’s remarkable recovery in just a month highlights how volatile the crypto market can be and how financial markets sometimes defy what investors could deem as ‘common sense’.

Rising tensions between the United States and China on the trade front contributed to triggering a much-needed pullback in the crypto market and Bitcoin was not spared.

The token dropped to $100,000 shortly after hitting its new all-time high as momentum indicators were already flashing sell signals all over.

However, traders are still quite bullish on BTC even though the token has hit record levels. Data from CoinGlass shows that open interest for Bitcoin futures is again hovering near all-time highs at $75 billion.

Interestingly, traders have shifted their positioning in the futures market lately. The 24-hour long/short ratio of accounts holding BTCUSDT currently sits at 0.56, meaning that most traders are bearish. This marks a significant shift from the 1.43 reading we saw on June 5, back when BTC dropped to $100,000.

So, traders are now expecting a decline in the price of BTC. Let’s see if the charts favor that thesis.

Can BTC Make a New All-Time High?

First off, we hit the $110,500 target we set in our latest BTC price prediction from June 9. Back then, we emphasized that the token’s bullish breakout above the $107K level in the 4-hour chart favored a push to this key resistance.

Although we were waiting for a retest of $107,000 after a breakout, we only got a small one in the lower time frame (15-min or lower) and then liquidity exploded and the price was propelled to $110,500.

Hence, this is now a key support to watch in case BTC retraces from this resistance, which seems highly likely based on the latest price action.

Going back to the same chart we shared back then, we can see three consecutive rejections once the price gets to $110,500, meaning that selling pressure is strong at those levels.

For now, buyers have shown up to scoop up Bitcoin every time it drops to $109,000.

So, either they are accumulating enough tokens to prompt a breakout and flush short sellers (liquidity grab) or this could be a sign that the market is ready to distribute and push BTC back to $107,000 to retest this key area.

Two Scenarios Could Unfold for BTC

What traders will probably be looking for here is confirmation of one thing or the other. On the one hand, if a breakout occurs above the $110,500 level, a retest of this area from above will play out similarly to how the $107K breakout unfolded two days ago.

If that happens, we will definitely hit a new all-time high in the next few hours.

On the other hand, if these rejections lead to a strong move downwards, what could confirm such a move is a bearish ‘death cross’ between the 9-day and 21-day EMA along with a buy signal in the Relative Strength Index (RSI), which has already taken place in the 4-hour chart.

In that case, a retest of the $107,000 level would provide bulls with a more decent entry to profit from the next leg up. As long as that support holds, it is just a matter of time for the top crypto to reach new heights.