Bitcoin must maintain its momentum as it nears its all-time high, with a drop to $108,000 potentially sparking a bearish reversal, according to a trader.
“You really don’t want to see it fall back below $108K now,” crypto analyst Daan Crypto Trades said Thursday, noting that Bitcoin is currently “attempting a breakout.”
$2.67 billion in Bitcoin long positions are currently at risk
“Any closes around the $110K level would be promising,” he added. Bitcoin hit $110,498 on Thursday but has since pulled back to $109,250, according to CoinMarketCap data—about 2.5% below its all-time high of $111,970.
According to Daan’s chart analysis, if Bitcoin slips back toward the $108,000 level—reclaimed only on Wednesday—it could spark a bearish downtrend, potentially dragging the price below $100,000 and possibly as low as $96,000.
Bitcoin hasn’t dipped under $100,000 since June 22, when it briefly touched $98,900 during the Israel-Iran conflict. A drop below that mark again could liquidate around $2.67 billion in long positions, based on CoinGlass data.
Several analysts remain optimistic about Bitcoin’s upward momentum. Crypto analyst Miles Deutscher remarked, “It’s very hard to be bearish here.”
Crypto trader CryptoFayz, using chart analysis, noted that if Bitcoin breaks through its current all-time high of $111,960, it could extend its rally toward $116,000.
Likewise, Markus Thielen of 10x Research told Cointelegraph on Thursday that Bitcoin could reach that level by the end of July, pointing to strong inflows into spot Bitcoin ETFs, uncertainty surrounding the U.S. Federal Reserve, and a sharp decline in Bitcoin supply on exchanges.
Bitcoin’s consolidation phases are unfolding differently this cycle
However, Daan noted that Bitcoin’s current consolidation phase appears somewhat different from previous ones this cycle. “It’s still following the usual pattern—stalling, dipping below, reclaiming the range, and grinding higher,” he said, “but it’s lacking the actual breakout and follow-through.”
James McKay, founder of McKay Research, added, “The longer these periodic, multimonth consolidations continue, the more they pull us away from the typical four-year cycle behavior.”
