Bitcoin (BTC) Dips Below $110K, Eyes July 4th US Independence Day Rebound

Key Takeaways

• BTC’s price has fallen below $110,000 after attempting to retest its record high.
• Analysts differ on the coin’s targets amid the US Independence Day celebration.
• Here is how Bitcoin’s price might perform as indicators flash interesting signals.

Bitcoin (BTC) may have slipped back below the $110,000 mark, but it’s still on track to close July 4, U.S. Independence Day, on a stronger note.

The price briefly flirted with a breakout yesterday, showing signs of challenging its all-time high. But resistance from sellers kept the rally in check.

As of this writing, BTC is trading around $108,716, marking a modest pullback. While a surge toward $120,000 may not be imminent, on-chain data suggests a drop below $105,000 is unlikely over the weekend.

Bitcoin Sees More Demand

First, CCN looked at the Bitcoin spot taker Cumulative Volume Delta (CVD). This metric measures the difference between the buy and sell volume over a 90-day window.

When the CVD is positive and increasing, buyers are dominant, and the price can trade higher. On the other hand, a negative CVD reading indicates that sellers have the upper hand.

Try Our Recommended Crypto Exchanges

Sponsored

Disclosure

We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.

Binance

promotions

Get a trading fee rebate voucher worth 20 USD when you register and verify your account.

Coins

317

Claim Offer

Phemex

promotions

Earn up to $6050 in crypto when you sign up

Coins

228

Claim Offer

Ecxx

promotions

Trusted, Secure & Crypto Friendly

Coins

5

Claim Offer

In this case, the BTC taker CVD is in the green zone, indicating spot buying volume has outpaced selling pressure. If sustained, Bitcoin’s price could bounce above $110,000 again, especially with optimism around the U.S. Independence Day celebration.

Analysts Share Their Views

Interestingly, some analysts also share this view. For instance, Dariusz Kowalczyk, co-founder of Bitward Invest, noted that the strong bounce above $105,000 indicates that Bitcoin’s price might increase.

“BTC bounced strongly from $105,000 and has confirmed a daily breakout. We’re now in the retest zone, eyes on $108,400. If it holds, the first target will be $114,000. If it loses, the $108,000 setup is invalid and will see a dump till $105,600,” Kowalczyk wrote on X.

However, VetLe Lunde, Head of Research at K33 Research, mentioned that a low funding rate could suppress Bitcoin’s price.

“The sustained low funding rate environment is fascinating. Perps trade at a lasting discount to spot, no risk appetite — annualized 7-day average funding rates at 3.46%. BTC has never traded this close to its ATHs at such low funding rates,” Lunde opined .

BTC Price Analysis: Bullish

Meanwhile, Bitcoin’s technical outlook shows that the coin’s price could ignore the low funding rate and increase. The Money Flow Index (MFI) has risen above the neutral line at press time.

This rise aligns with the signs from the spot CVD and indicates rising buying pressure. If sustained, BTC’s price could rise beyond $112,131.

The Awesome Oscillator (AO) also supports this bias. As seen below, the AO has moved to the positive region, indicating that momentum has transitioned from bearish to bullish.

If that trend continues, Bitcoin’s price might move to the abovementioned target. On the contrary, if momentum turns bearish, that might not be the case, as BTC might slide to $98,071.