Bitcoin Tests Key Resistance Amid Diverging Market Signals

Bitcoin (BTC) hovered near $109,000 early Monday after recording its highest-ever weekly close, with traders debating whether the cryptocurrency will break through psychological resistance at $110,000 or experience a short-term pullback. The flagship cryptocurrency's 1.8% weekly gain comes despite reactivated dormant wallets and macroeconomic uncertainties, demonstrating remarkable resilience in the current market cycle.

Liquidity Targets Shape Short-Term Price Action

Market analysts identify two critical liquidity zones influencing BTC's trajectory:
• Upside target: $110,000 ask liquidity wall on major exchanges
• Downside potential: $105,200 support confluence with 50-day EMA
【CoinGlass data】 shows $107,800 as immediate support, while order book analysis reveals concentrated sell orders above current levels. "The 1D50EMA confluence makes $105K a likely magnet before continuation," noted trader CrypNuevo, suggesting a potential fakeout move to liquidate overleveraged positions.

Technical Milestones Fuel Bullish Sentiment

Sunday's weekly close at $109,240 marked Bitcoin's strongest technical performance since its 2021 bull run. Analysts highlight three key developments:
1. Weekly chart confirmed breakout above "final resistance" level
2. Daily RSI maintains healthy 62 reading despite 28% monthly gain
3. Funding rates turn negative during price rise — historically bullish
——This divergence between price and derivatives suggests mounting short squeeze potential—— according to CryptoQuant data showing Binance traders increasingly betting against the rally.

Macro Crosscurrents Create Complex Backdrop

While technicals appear strong, macroeconomic factors introduce uncertainty:
• Delayed US tariff decisions (new deadline August 1)
• Fed minutes release Wednesday could clarify rate cut timeline
• DXY weakness (-10% YTD) continues supporting risk assets
President Trump's renewed calls for aggressive rate cuts contrast with Fed Chair Powell's tariff-inflation warnings, creating policy tension. Mosaic Asset analysts note: "The dollar's collapse mirrors 1973 patterns, but tariff implementation could abruptly reverse this trend."

Sentiment Indicators Flash Warning Signs

Market psychology shows worrying extremes despite unresolved macro risks:
• Crypto Fear & Greed Index jumps to 73 (Greed territory)
• Traditional markets show 78/100 "Extreme Greed" reading
• Retail FOMO evident in altcoin market outperformance
This optimism persists even as 【liquidation heatmaps】 suggest heightened volatility risk near all-time highs. The setup echoes previous market tops where investor euphoria preceded significant corrections.

Critical Week for BTC Price Discovery

Traders await clarity on three fronts:
1. Fed speaker commentary (Waller Thursday)
2. Bitcoin's ability to hold $108K as support
3. Altcoin market stability
Material Indicators observes: "The $110K liquidity grab remains the line in the sand — break through and price discovery begins." With historical trends showing July often establishes cyclical highs, this week's price action could determine whether BTC challenges $120K or revisits $100K support first.