Bitcoin: Price Stays Range-Bound, But July Sentiment Hints At Potential Bullish Breakout (Technical Analysis)

Summary Bitcoin bearish engulfing pattern signals hesitation below $108,800. Bulls look for momentum to challenge supply zone resistance. July seasonal trends and S&P 500 record highs add to Bitcoin bullish backdrop. By Sholanke Dele Bitcoin price action has kept traders on edge over the past week, as the cryptocurrency stayed locked in a narrow range below the supply zone at $108,800 and above the support at $106,500. Over the weekend, price attempted a rally but struggled to push beyond this ceiling, reflecting hesitation among buyers to commit above the resistance level. On Monday, Bitcoin slipped to a three-day low, forming a bearish engulfing candlestick pattern that signals potential weakness. This pattern is particularly important since it emerged from a rejection at the upper boundary of the bearish channel, which aligns directly with the supply zone at $108,800. Such technical confluence highlights how sellers used this area to reinforce their control, putting downward pressure on price and pushing it closer to the crucial support zone. BTC price dynamics (January – June 2025). Source: TradingView Tuesday’s Asian and European sessions saw further downward movement, as Bitcoin fell below the previous day’s low to reach an intraday bottom near $106,700. However, the decline found support at the 50 EMA on the four-hour chart, helping price stabilize. During the European session, Bitcoin slightly recovered to trade near $107,000, hovering close to the day’s opening level. This stabilization shows that despite recent bearish signals, there is still a layer of support preventing an immediate breakdown. Bitcoin July bias turns bullish as S&P 500 correlation strengthens risk appetite The area around $106,500 has held firm so far, providing a psychological floor that could serve as a springboard for a potential move higher. If this level continues to withstand selling pressure, it could act as a base for bulls to attempt another breakout above the bearish channel. A successful push beyond $108,800 would signal renewed momentum and might attract sidelined investors looking for confirmation of strength. Looking at broader factors, July carries a bullish undertone for Bitcoin. Historical data suggests that Bitcoin tends to follow positive seasonal trends in July, and this sentiment is further supported by a rising correlation with the S&P 500. The S&P 500 recently reached an all-time high, hinting that risk appetite across markets is improving. As investor confidence strengthens in equities, Bitcoin could benefit from spillover optimism, creating conditions that favor a breakout attempt. In summary, Bitcoin currently stands at a critical juncture, held up by solid support while technical signals point to hesitation above resistance. The convergence of technical setups and broader market sentiment sets the stage for a potentially decisive move in July, one that could define the next chapter of its price trajectory. Bitcoin price dropped after traders took profit ahead of tariff talks . BTC faced rejection at $108,800 and fell back toward $106,500 support. This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post

Source: Seeking Alpha