Bitcoin encounters resistance at $110,000, while BNB, SOL, LINK, and AAVE are showing positive signals.

Bitcoin (BTC) has been unable to maintain a closing level above the psychological threshold of $110,000 – a move believed to have triggered a wave of take profit from short term traders, pulling the price back down to around $108,000. According to analyst Daan Crypto Trades, if BTC can hold above $110,000, it will be a positive signal. Conversely, breaking below $108,000 could lead to a deeper current correction.

Meanwhile, some experts still hope for political catalysts from the US. Specifically, President Donald Trump's Big Beautiful Bill is said to potentially boost the rise of Bitcoin, helping this coin move towards conquering its historical peak. Data from Kalshi predicts that US public debt will exceed $40 trillion by 2025 – nearly double the $23.2 trillion level of 2020. In fact, periods of debt explosion in the past have accompanied strong price increases of Bitcoin. A typical example is at the end of 2020, after Trump signed the COVID-19 spending package, the price of BTC surged by 38%.

Although most analysts remain optimistic about the medium-term outlook, a cautious perspective comes from expert Rekt Capital. In a recent video, he stated that the current bullish cycle could only last another two to three months if Bitcoin repeats the pattern that occurred in 2020.

Can Bitcoin bounce back from the current support zone and lead to a recovery for altcoins? Let's analyze the charts of the five cryptocurrencies that are currently showing the strongest technical signals.

Technical Analysis of BTC

The bulls tried to push Bitcoin above the resistance zone of $110,500 on Thursday, but the bears still held their ground.

BTC/USDT daily chart | Source: TradingViewSelling pressure has pulled the price back below the downtrend line – a negative signal. Bulls are expected to strongly defend the area of moving averages. If they fail, the BTC/USDT pair could slide down to $105,000, followed by the psychological support level at $100,000.

On the contrary, if the price strongly rebounds from the area of the moving averages, it indicates that positive sentiment is prevailing. At that point, the likelihood of a surge to the historical peak of $111,980, then approaching the neckline of the inverse head and shoulders pattern around $113,500 will improve.

BTC/USDT 4-hour chart | Source: TradingViewOn the 4-hour chart, the price has pulled back to the (SMA) 50-period simple moving average, where the bulls are trying to halt the decline. If the price bounces from the current level and breaks the downtrend line, it indicates demand is present in the lower price range. The bulls will once again try to push the price above the $110,500 mark. If successful, the likelihood of further increase to $113,500 will rise.

On the contrary, if the price remains below the 50-day SMA line, it will be a sign of take profit from short term investors. At that point, the BTC/USDT pair risks dropping to $105,000. This will be the support level that the bulls must defend at all costs, because if it closes below this threshold, the price could continue to slide down to $100,000.

Technical Analysis of BNB

BNB has surged from the breakout zone on Wednesday and surpassed the 50-day SMA at $654.

BNB/USDT Daily Chart | Source: TradingViewBears are trying to pull the price below the moving averages, but bulls are expected to defend this price area. If the price bounces from here and breaks above the $665 level, the BNB/USDT pair may advance to $675. Bears may hinder the upward momentum at this level, but if bulls gain the upper hand, the price could reach $698.

This positive scenario will be invalidated in the short term if the price breaks below the moving average and returns to the downtrend channel. This would indicate that the market has rejected the breakout from the channel.

BNB/USDT chart 4-hour | Source: TradingViewOn the 4-hour chart, the price has been pulled back to the 50-day SMA line. The 20-day EMA line is moving sideways and the RSI is just below the average threshold – indicating that neither side has a clear advantage.

The bulls need to push the price above $665 to gain an advantage. At that point, the BNB/USDT pair could move towards $675, and then to $698. Conversely, if the price breaks below the moving averages, it indicates that the bulls are weakening. In that case, the price could slide back to $640.

Technical Analysis of SOL

The continuous failure of bulls to break through the $159 resistance level has triggered a correction that brought the price of Solana (SOL) below the 20-day EMA ($148).

The daily chart of SOL/USDT | Source: TradingViewThe 20-day EMA is flat while the RSI is just below the average threshold, indicating a balance between supply and demand. The bulls will regain the upper hand if they can push the SOL/USDT pair above the $159 level, paving the way for a rise to $168, and then to $185.

On the contrary, if it closes below the 20-day SMA, it implies that the bears have gained the upper hand. At that point, the price could drop sharply to the important support level of $140 – a price range that the bulls need to protect fiercely, because if it breaks, the SOL/USDT pair could plunge to $126.

SOL/USDT chart 4-hour | Source: TradingViewOn the 4-hour chart, the bulls' failure to defend the 50-day SMA is a negative signal. The price may slide back to $145 – a key level to watch. If the price bounces strongly from $145, it indicates that buying pressure is emerging in the lower range. At that point, the bulls will attempt to bring the price back to $159. Closing above $159 will complete the inverse head and shoulders pattern with a target price of $192.

On the contrary, if the price breaks down below $145, this currency pair could plunge to $137. Bulls are expected to strongly defend the $137 level because if it breaks, the price could continue to drop to $130.

Technical Analysis of LINK

Chainlink (LINK) rose above the 20-day EMA ($13.32 on Wednesday, but the bulls could not overcome the 50-day SMA )$14.09 on Thursday. This indicates that the bears are still actively operating at higher price levels.

LINK/USDT daily chart | Source: TradingViewThe LINK/USDT pair may drop to the $12.73 level – an important threshold to watch. If the price rebounds strongly from this level, the bulls will once again try to push the pair above the 50-day SMA line. If successful, the price could surge to $15.66 and then to $18.

On the contrary, if the downtrend continues and the price breaks through the $12.73 level, it indicates that the bears are attempting to take control of the market. A break and close below the $12.73 mark could pull the price down to $11.

The LINK/USDT chart in the 4-hour timeframe | Source: TradingViewThe fact that the currency pair cannot maintain above the resistance line indicates that the bears are trying to trap those who buy in too early. The price may drop to $12.73, where the bulls are expected to establish a strong line of defense. If the price bounces back from this level, the bulls will once again try to push the price above the $14.10 threshold. If successful, the price could continue to rise to $15.77.

On the contrary, if the price breaks and closes below $12.73, selling pressure may increase significantly. At that time, the price could plunge to $11.50.

Technical Analysis of AAVE

Aave (AAVE) is currently facing a resistance area at the level of $286, but a positive signal is that the bulls have not allowed the price to fall below the moving averages.

Daily AAVE/USDT Chart | Source: TradingViewThe moving averages are trending upwards, indicating that the advantage still lies with the bulls. However, the RSI is approaching the neutral zone, signaling that the upward momentum is showing signs of weakening. If the price strongly bounces from the moving averages, the bulls will attempt to push the AAVE/USDT pair above the $286 level. If successful, the price could jump to $325.

However, this positive outlook will be invalidated if the price continues to weaken and breaks below the moving averages. This means that the bulls have given up their dominant position. The price could then drop to $240, or even $220.

AAVE/USDT 4-hour chart | Source: TradingViewThe correction from the $286 mark shows that the bears are defending firmly at this level. If the price bounces from the uptrend line and breaks above the 20 EMA on the 4-hour chart, it indicates strong demand in the low price area. The bulls will again try to push the price above the $286 threshold. If successful, the price could continue to rise to $295, then to $310.

On the contrary, if the price breaks through the upward trend line, it indicates that the bulls are gradually losing control. The price may drop to $248 – an important support area to watch. If the $248 level is breached, the price risks plummeting down to $220.

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