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Bitcoin (BTC) continues to break records with another historic weekly close, signaling strong bullish momentum as traders anticipate new all-time highs.
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Market participants are closely watching key liquidity levels around $105,000 and $110,000, which could dictate short-term price movements and potential entry points.
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According to COINOTAG sources, declining Bitcoin funding rates amid rising prices suggest a potential short squeeze, while investor sentiment reaches extreme greed despite macroeconomic uncertainties.
Bitcoin hits record weekly close, eyeing $105K liquidity dip and $110K resistance as funding rates decline and investor greed intensifies amid macro risks.
Bitcoin Eyes Key Liquidity Zones as Bulls Target New All-Time Highs
Bitcoin’s price action in early July has captured the attention of traders as it hovers near critical liquidity zones. After reclaiming support above $108,000, BTC is showing signs of strength, with the $110,000 level acting as a significant resistance barrier. Market data from Cointelegraph Markets Pro and TradingView highlights this range as a battleground for price discovery. The presence of dormant wallets reactivating after years of inactivity briefly pressured the market, but Bitcoin quickly regained momentum, reinforcing bullish sentiment.
Notably, liquidation targets around $105,000 have emerged as potential magnets for price action. Analyst CrypNuevo points out that this level aligns with the 50-day exponential moving average (EMA), making it a strategic entry point for investors anticipating a short-term dip before a renewed rally. This dynamic suggests that while Bitcoin’s trajectory remains upward, traders should prepare for possible retracements to absorb liquidity and fuel subsequent advances.
Market Sentiment and Technical Indicators Support Bullish Outlook
Technical analysis reveals that Bitcoin’s monthly price behavior often sets highs or lows within the first 12 days, followed by significant directional moves exceeding 20%. This pattern, observed by trader Daan Crypto Trades, implies that the current consolidation phase may precede a decisive breakout. Additionally, order book data from Material Indicators and CoinGlass underscores the importance of the $110,000 resistance and $107,800 support levels in shaping near-term market dynamics.
Meanwhile, funding rates on major exchanges like Binance are declining even as prices rise, indicating a growing number of short positions. CryptoQuant contributor BorisVest explains that this divergence between price action and trader sentiment could trigger forced liquidations, potentially accelerating Bitcoin’s upward momentum. This setup often precedes sharp rallies, as bearish bets are squeezed out of the market.
Record Weekly Close Reinforces Bitcoin’s Bullish Control
Bitcoin’s latest weekly close at approximately $109,240 on Bitstamp marks the highest ever recorded, consolidating gains from the previous month and signaling strong bullish control. This milestone has been met with optimism from market commentators such as Matthew Hyland, who asserts that bulls are firmly in charge and anticipates a continuation toward new all-time highs within July.
Rekt Capital, a respected analyst, described the weekly close as “truly pivotal,” emphasizing that Bitcoin has overcome its final major weekly resistance. The focus now shifts to converting this resistance into robust support, which could serve as a launchpad for further price appreciation. This technical breakthrough is a critical step in Bitcoin’s ongoing bull cycle, reinforcing confidence among traders and investors alike.
Macro Factors and Trade Tariffs Influence Market Sentiment
While Bitcoin’s technical setup remains strong, macroeconomic factors continue to influence market sentiment. The upcoming release of the Federal Reserve’s June meeting minutes is expected to provide clarity on interest rate policies, which have diverged from political pressures advocating for rate cuts. US President Donald Trump’s vocal criticism of Fed Chair Jerome Powell and the extension of reciprocal trade tariff deadlines to August 1 add layers of complexity to the economic landscape.
Despite these uncertainties, dollar weakness has emerged as a supportive factor for risk assets, including Bitcoin. The U.S. Dollar Index (DXY) has declined over 10% in 2025, marking its worst start since 1973, which has bolstered investor appetite for alternative assets. Trading firm Mosaic Asset highlights this dynamic as a key catalyst behind the risk-on environment, underscoring the interconnectedness of currency movements and crypto market performance.
Investor Sentiment Reaches Extreme Greed Amid Uncertain Macroeconomics
Sentiment indicators reveal a growing disconnect between market exuberance and economic fundamentals. CNN’s Fear & Greed Index for traditional finance currently registers at 78/100, signaling “extreme greed” despite ongoing tariff concerns, inflation risks, and geopolitical tensions. Similarly, the Crypto Fear & Greed Index has climbed to 73/100, its highest level since late May, reflecting heightened bullish sentiment within the crypto community.
Mosaic Asset notes that such elevated greed levels often precede market reversals but can also fuel sustained rallies when supported by strong fundamentals. The current environment suggests that while investors are optimistic, caution remains warranted given the broader macroeconomic backdrop.
Conclusion
Bitcoin’s recent record weekly close and proximity to key liquidity zones underscore a robust bullish trend supported by favorable technical and sentiment indicators. The interplay between declining funding rates and rising prices hints at a potential short squeeze, which could propel BTC toward new all-time highs. However, macroeconomic factors such as trade tariffs and Fed policy continue to inject uncertainty, reminding investors to remain vigilant. Overall, Bitcoin’s market structure and investor behavior suggest a cautiously optimistic outlook as July unfolds, with strategic entry points around $105,000 offering compelling opportunities for disciplined traders.
