Bitcoin Breaks Out as Bulls Target $110K Amid Strong Momentum

• Bitcoin’s breakout from a descending channel signals strong bullish momentum, with eyes set on the $110K–$112K resistance zone.
• Buyers front-ran bearish expectations, fueling a rally past key levels. A retest of $106.1K–$106.7K could precede a correction.
• If BTC holds above resistance, further upside is likely. A rejection, however, may lead to a dip toward $97,667 before another surge.

Bitcoin’s price action on the 8-hour BTCUSDT signals a strong breakout attempt. The cryptocurrency recently bounced off the lower boundary of a descending channel. Consequently, this move has pushed BTC toward a key resistance level. The price has approached $105,476, with potential upside momentum toward $110,000. Besides technical patterns, market sentiment remains bullish as buyers aim for higher price targets.

Key Market Structure and Breakout Potential

The descending channel, marked by two yellow trendlines, has guided Bitcoin’s price for several sessions. A liquidity grab in the mid-channel zone created a consolidation phase before the latest upward surge. This move reinforced buying pressure, establishing higher support levels. Additionally, the structure indicates an attempt to break the sequence of lower highs and lower lows.

Ahmed a market analyst, noted that his long positions initiated at $98.9K, $100.5K, and $103K were closed profitably. According to him, the rally emerged as traders front-ran those anticipating a drop to $95K. Consequently, Bitcoin is now on track to test the $110K–$112K region before a potential pullback below $95K. Furthermore, his analysis suggests a retest of $106.1K–$106.7K before a correction unfolds.

Resistance, Support, and Potential Price Movements

Bitcoin’s price movement indicates critical decision zones. The upper boundary of the descending channel has previously triggered multiple rejection points. However, the current breakout attempt aligns with historical price behavior. If BTC sustains its move above this structure, buyers may target $110K and beyond. Moreover, volume activity near the breakout zone remains crucial in confirming further upside.

Conversely, a rejection from this level could push BTC back toward the lower boundary. The risk zone remains below $100K, with $97,667 serving as a key support level. If price action weakens, another retest of this support may occur before resuming an upward trajectory.