Bitcoin has been on a bullish run, recently surpassing $105,000, but the cryptocurrency is now encountering significant challenges as it nears its previous all-time high of $108,000.
Market analysts are closely monitoring Bitcoin’s performance to see whether it can maintain upward momentum or if resistance will hold strong.
Key indicators, including funding rates and long-term holder behavior, suggest that Bitcoin’s journey toward $108K may face more hurdles than anticipated
CryptoQuant analyst ShayanBTC recently shared insights on the weakening funding rates, a crucial on-chain metric that measures market sentiment.
Despite Bitcoin’s price rally, funding rates have started to decline, signaling a potential slowdown in market enthusiasm.
Shayan emphasized that a decline in funding rates typically reflects a weakening in demand from perpetual markets, causing traders to hesitate on further bullish bets.
This bearish divergence raises concerns about whether Bitcoin can push through the $108K resistance without a significant rise in optimism and an influx of long positions.
Bitcoin’s Path to $108K: What’s Holding It Back?
For Bitcoin to decisively breach the $108K level, analysts agree that funding rates must rise, signaling stronger market conviction.
Without this increase in long positions, the resistance at $108,000 could hold, resulting in a period of consolidation or even a price rejection.
On the flip side, long-term Bitcoin holders, those who have kept their BTC for seven years or more, are showing no signs of selling.
This behavior is often seen as a sign of confidence in Bitcoin’s long-term potential, as these holders have typically remained steadfast through previous market cycles.
Their unwillingness to sell further supports Bitcoin’s price stability in the face of short-term fluctuations.
The Bottom Line: Will Bitcoin Break $108K?
As Bitcoin inches closer to its all-time high, it remains to be seen whether the bulls can overcome the bearish signals and sustain their momentum. Analysts are watching for a rise in funding rates and market optimism, as these factors will likely determine Bitcoin’s ability to breach the $108K resistance level.
