- Bitcoin retests key breakout level at $108,500, aiming to confirm new support
- On-chain MVRV ratio signals sustained bullish sentiment despite recent volatility
- Declining trading volumes threaten momentum as BTC nears $110K resistance
Bitcoin (BTC) is showing fresh signs of strength as it navigates a critical phase in its current market structure. After weeks of uncertain movement, the asset has closed back above a long-standing descending trendline. This signals a potential bullish shift that could pave the way for a rally toward new highs. However, weakening volume may pose a risk to momentum, making this breakout attempt both promising and precarious.
Bitcoin Tests Post-Breakout Support
BTC recently surged past a key trendline resistance around $108,500. This level has rejected past rallies, but the current price action is different. As of now, Bitcoin is consolidating just above this former resistance. This consolidation indicates that the trendline could now be acting as support.
Analyst Rekt Capital notes this area as a zone of interest. A successful retest could confirm the breakout and attract new buyers. If BTC holds above $108,500, it may climb toward the $110,000–$112,000 range. Failing to hold may invalidate the breakout and send the price back toward lower support near $102,464.
#BTC
— Rekt Capital (@rektcapital) July 7, 2025
Bitcoin has Daily Closed right back above the trendline, positioning itself for a post-breakout retest once again to truly solidify the reclaim
That retest is already underway$BTC #Crypto #Bitcoin https://t.co/mkv6iLt5zS pic.twitter.com/ukcJuT7QuY
On-Chain Indicators Show Strength
Beyond price action, on-chain metrics are offering a more encouraging view. CryptoBusy highlights Bitcoin’s MVRV ratio, which currently sits at 2.26 comfortably above its 365-day moving average. Historically, MVRV values above 2 signal bullish sentiment, but caution is advised if levels exceed 2.5.
Significantly, this indicator rebounded alongside Bitcoin after the August 5 dip, often referred to as a “Black Swan” event. This rebound shows market strength and suggests that many holders remain confident. If the MVRV ratio stays elevated without becoming overheated, BTC could target a medium-term move toward $90,000–$100,000, and possibly even reach $107,800.
$BTC IS GOING STRONG!📈
— CryptoBusy (@CryptoBusy) July 7, 2025
There’s a key indicator called MVRV, and right now, it’s holding above its long-term trend line (365-day average).
That’s a good sign. pic.twitter.com/1bhCamPAmU
Volume Slows, Momentum Tested
However, data from Glassnode paints a more cautious picture. Despite Bitcoin’s approach to $110,000, trading volumes have declined to their lowest point in over a year. Spot trading volume has dropped to $5.02 billion, while futures volume has fallen to $31.2 billion.
This low volume suggests the market may be entering a seasonal slowdown. While investor sentiment remains high, the lack of liquidity could limit upside momentum. If volume fails to recover, a correction toward key support at $95,000 becomes more likely.
