Bitcoin news: BTC price stuck in consolidation amid declining funding rates
Bitcoin stalls below $112K as traders brace for breakout
Bitcoin price has struggled to find clear direction since it reached an all-time high at $112,000 in May.
For the past eight weeks, BTC has settled into a broader consolidation, holding above the important $100,000 psychological level but failing to challenge new highs. This lack of momentum reflects a market caught between profit-taking pressures and lingering long-term optimism.
Highlights
-Bitcoin trades between $107,370 and $109,860 as traders wait for a clear breakout
-RSI and the fear and greed index both sit at 50, showing a market in neutral gear
-Falling funding rates on Binance hint that traders are quietly positioning for downside
Over the last four days, Bitcoin has narrowed even further, trading within a tight range between $109,860 and $107,370. This consolidation highlights traders’ hesitation as they wait for a decisive catalyst. Yesterday’s decline within this range was driven by external shocks after the US announced new tariffs on major trading partners such as Japan. This news fueled risk-off sentiment across global markets and briefly pushed Bitcoin to the lower edge of its short-term consolidation.
BTC price dynamics (Dec 2024 - July 2025). Source: TradingView
Today, July 8, Bitcoin price action has continued to swing between key levels. It initially dropped to $107,370 during the Asian session, but quickly recovered to trade near $108,300 in the European session. This back-and-forth movement is defined by two key technical levels on the four-hour chart: the 20 EMA at $108,500 serving as immediate resistance, and the 100 EMA at $107,370 acting as near-term support.
Bitcoin RSI and fear and greed index at 50 confirm a lack of momentum
Technical indicators align with this indecisive price action. The RSI is at 50, indicating neutral momentum, and the fear and greed index also sits at 50, reflecting a market that is neither overly fearful nor excessively greedy. These neutral signals suggest that Bitcoin lacks a clear driver to break out of its current consolidation for now.
However, on the derivatives side, Binance data shows a steady decline in funding rates even as price consolidates. This shift suggests that a growing number of traders are positioning for a possible downside move, betting that the extended sideways pattern could eventually resolve lower.
Therefore, a break below $107,370 and the 100 EMA could open the way toward $106,500 as the next support level. Conversely, if Bitcoin can clear the 20 EMA at $108,500 convincingly, it may target the top of the consolidation near $109,800. This technical and sentiment setup reflects a tense standoff where neither bulls nor bears have taken firm control, leaving Bitcoin stuck in a waiting game until a decisive breakout occurs.
Bitcoin faced selling pressure as traders reacted to the $3 billion options expiry. Price flipped $108,500 into support after hitting a six-week high at $110,530.
