Bitcoin news: BTC holds above $109K as July rally gains strength
Bitcoin breaks out of 7-week bearish channel, targets $110,500
Bitcoin price action has taken a decisive turn this week, breaking away from the bearish price channel that had weighed on sentiment over the past two weeks.
The move began on Wednesday, July 2, when bitcoin surged strongly from a nine-day low and managed to break above both the top resistance trendline of the channel and the previous two-week high. This push lifted Bitcoin's price to $109,800 and shifted the technical narrative from weakness to potential strength.
Highlights
-Bitcoin breaks above bearish channel and flips $108,500 supply zone into new support
-Today’s price holds near $109,800 after gaining 0.65% in the European session
-Near-term focus is on $110,500 resistance while M2-driven macro flows boost bullish sentiment
The breakout above the supply zone at $108,500 has proven significant. This zone, which previously aligned with the top of the bearish channel, has now flipped into a support area, giving price a strong foundation. On Thursday, July 3, Bitcoin experienced some early selling pressure in the Asian session, but the $108,500 support zone effectively cushioned the decline. The presence of this support, reinforced by the 20 exponential moving average on the four-hour chart, has given buyers renewed confidence to enter the market.
BTC price dynamics (March - July 2025). Source: TradingView
By the European session today, Bitcoin price started climbing again from the support base, yet it struggled to move beyond the previous day’s high. As of today’s European session, bitcoin is trading close to $109,800 and has posted a 0.65% intraday gain. Importantly, the rally from yesterday has allowed bitcoin to fully recover all of this week’s earlier losses, putting the week-to-date gain at nearly 1%.
Bitcoin technicals shift bullish after breaking 7-week bearish channel
Beyond the technical structure, the recent push higher can be attributed to broader macro liquidity trends. A recent increase in M2 money supply has supported risk assets in general. While changes in money supply do not always cause immediate reactions in bitcoin, they often feed into risk markets gradually, providing liquidity that encourages speculative flows.
Looking ahead, traders are now closely watching the near-term resistance at $110,500. This level acted as a ceiling for Bitcoin in June and may pose a strong barrier to further gains this week. A successful break above it would signal a shift towards a more aggressive bullish stance. On the other hand, the reinforced support at $108,500 will act as a critical buffer in case of any retracement. The convergence of support from the previous supply zone and the 20 exponential moving average further strengthens this level, making it a key area for traders to monitor.
The overall technical landscape has improved significantly since the breakout, but the ability of Bitcoin to hold above support and challenge resistance at $110,500 will determine if the recovery can extend into a sustained uptrend. For now, the market remains in a delicate balance, leaning slightly towards optimism given the recent technical and macro tailwinds.
Short seller activity dropped, and Bitcoin rebounded from an 8-day low. Bitcoin held above $107,000, and RSI turned bullish on the daily and 4-hour charts.
