Bitcoin Faces Repeated Rejections at $110K: Is a Deeper Correction Coming?

Bitcoin Faces Repeated Rejections at $110K: Is a Deeper Correction Coming?

Bitcoin's latest rally has once again stumbled at the $110,000 mark, sparking fears of a potential short-term downtrend as macro headwinds mount and technical resistance builds.

BTC Price Stalls at $110K—Again

Bitcoin (BTC) failed for the third time in two months to break and hold above the $110,000 resistance zone, a level that has now become a psychological and technical ceiling for the crypto market leader.

The price retreat followed strong U.S. employment data, which dimmed hopes of imminent Federal Reserve interest rate cuts, pushing risk assets lower. As of press time, BTC is trading at $108,931, down slightly from its daily peak.

BTC/USD four-hour chart. Source: TradingView

Related: Bitcoin Eyes $150K Surge as Trump’s ‘Big Beautiful Bill’ Nears Signing

Why $110K Matters—and What Happens If It Breaks

Bitcoin has struggled to reclaim momentum above $110K since its May all-time high. Each rejection has further validated the overhead resistance range of $110,000 to $112,000.

A liquidity cluster worth $121 million, as shown by CoinGlass, sits just above this range. If BTC pierces through, it could trigger a short squeeze, rapidly pushing prices toward $114,000 or higher as short sellers rush to cover.

However, the longer Bitcoin remains below this level, the greater the risk of a deeper pullback.

Technical Red Flags Are Mounting

• Bearish RSI Divergence: Price has made higher highs, but the Relative Strength Index (RSI) is trending downward—often a precursor to corrections.

• Neutral Funding Rates: Indicate indecision among futures traders.

• Increased Taker Sell Volume: Suggests profit-taking near $110K, weakening upward momentum.

BTC/USD charts with past rejections from all-time highs. Source: Cointelegraph/TradingView

Related: Bitcoin Risks Breakdown if $108K Support Fails, Analyst Warns

Historically, repeated failures near all-time highs have led to notable retracements:

• January 2025: Rejection at $107K led to a 14% drop.

• March 2024: Triple-failure at $72K preceded an 18% correction.

If history repeats, Bitcoin could drop between 14%–18%, potentially landing around $96,000–$105,000.

BTC/USD four-hour chart. Source: TradingView

Key Support Zones to Watch

Analysts and on-chain data point to several critical support levels below $110K:

Price Level

Reason

$108,000 – $107,500

Major bid support and 50-day SMA

$106,000

Confluence of 100-day and 200-day SMAs

$105,200 – $104,000

Recent local low and psychological support

Trader KillaXBT warns: “Lose $108K and we risk deeper downside. But hold it—and we could be sweeping new ATHs this month.”

BTC/USD chart. Source: KillaXBT

Related: Bitcoin Targets All-Time Highs as Futures Surge Signals Breakout Momentum

Bulls vs. Bears: What’s Next for BTC?

• Bull Scenario: A clean break above $110K could initiate a rally toward $114K, driven by forced short liquidations.

• Bear Scenario: Failure to hold $107,500 opens the door to a retest of $105K–$104K, possibly even $100K, if macro weakness continues.

With liquidity clusters, RSI divergences, and macroeconomic uncertainty all in play, the coming days could define Bitcoin’s medium-term trend.

BTC/USDT three-day liquidation heatmap. Source: CoinGlass