Bitcoin (BTC) surged following Federal Reserve Chair Jerome Powell’s comments , but faces strong resistance between $108,000 and $110,000 , according to Glassnode co-founders Yann Allemann and Jan Happel via their Negentropic X account. While Powell’s remarks helped ease market pressure , analysts caution that weakening liquidity and slowing network growth could limit further upside . Powell’s Impact on Bitcoin’s Price Rally Bitcoin rose to $104K–$106K after Powell’s speech, signaling a relief rally . Investors reacted positively to Powell’s stance, pushing BTC toward resistance levels . Federal Reserve’s rate policies remain a key factor , influencing BTC’s short-term movement. Despite the initial bullish momentum , Bitcoin now needs strong volume and momentum to break past $110K . Why Bitcoin Faces Resistance at $108K–$110K Key Challenges to Bitcoin’s Breakout: Weak Liquidity Levels – Market depth remains thin , limiting buy-side strength . Slowing Network Growth – Bitcoin’s on-chain activity isn’t expanding fast enough to fuel a breakout. Technical Resistance – The $108K–$110K zone has strong sell pressure , requiring significant demand to overcome . For Bitcoin to break higher , buyers must step in with strong conviction . Can Bitcoin Overcome the $110K Barrier? Bullish Scenario: If Bitcoin gains volume and breaks above $110K , it could target new highs . Bearish Scenario: Failure to clear resistance could lead to a pullback , possibly retesting $100K–$102K . Key Levels to Watch: $108K–$110K as resistance, $102K as support . Traders should monitor liquidity inflows, network growth, and macroeconomic trends . What’s Next for Bitcoin? Fed Policy & Inflation Data Impact – Powell’s next statements could shape BTC’s trajectory . Spot ETF Inflows & Institutional Demand – Continued inflows could support Bitcoin’s rally . Breakout Potential Above $110K? – A strong push past resistance could fuel another leg higher . Bitcoin’s short-term direction hinges on market momentum and key technical levels . FAQs Why is Bitcoin struggling at $108K–$110K? Weak liquidity, slowing network growth, and strong technical resistance make a breakout difficult . What caused Bitcoin’s recent rally? Federal Reserve Chair Jerome Powell’s comments eased market pressure , triggering a relief rally . What happens if Bitcoin breaks above $110K? A breakout could trigger another rally , potentially setting new highs . What if Bitcoin fails to break resistance? Failure to break above $110K could lead to a pullback toward $102K–$100K . How can Bitcoin overcome resistance? Bitcoin needs strong buy volume, institutional demand, and improving on-chain activity . Conclusion Bitcoin faces resistance at $108K–$110K despite a Powell-induced rally , with weak liquidity and slowing network growth raising concerns . For a decisive breakout , BTC needs strong volume and momentum , or it could retrace toward lower support levels . With institutional inflows, macroeconomic factors, and market sentiment playing key roles , traders should watch for Bitcoin’s next move carefully . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries.
