Bitcoin is trading just below the $109,000 mark and showing signs of weakness on the lower timeframes. As noted in our previous update, the structure looked bullish across several timeframes, but the rally lacked volume support. That concern played out as price failed to break out on the lower timeframes and momentum has faded since. The daily chart still shows a potential bullish flag, but a breakout in the next two to three days seems unlikely. With the July 4th holiday and the weekend ahead, the market is likely to stay in consolidation mode. Let’s break it down further:
Analyzing the Charts
Looking at the 1-hour chart, Bitcoin attempted to break out of the bullish flag it was forming, but the move was rejected at the $110,500 resistance level. As mentioned in earlier analyses, momentum in this area was always going to be limited given the sluggish market conditions and lack of volume.
Given the current setup, Bitcoin is likely to move sideways over the next few days, with further consolidation expected on the lower timeframes. The market needs strong momentum to push higher, and it's more probable that the price will retest lower levels before any meaningful bullish move resumes.
No major move looks likely in the immediate short term. The key level to watch remains the $110,500 resistance, which Bitcoin has failed to break on multiple attempts. On the downside, support sits around $108,500. If the price breaks below this level during consolidation, the next critical support to hold is near $106,500.
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Final Takeaway
Bitcoin is currently trading just below the $109,000 mark and is moving sideways on the lower timeframes. The lack of volume and momentum suggests that the price may continue to consolidate in this range for a few more days. The $110,500 level remains a strong resistance, and without a solid push, it's unlikely to break anytime soon. For now, we are staying on the sidelines and will wait for a clear move above $110,500 before considering any trades.
