Bitcoin’s Rally Has More Fuel—A Dip to $110K Might Be the Rocket Boost It Craves
Bitcoin bulls, buckle up—the rollercoaster isn’t done yet.
After a blistering run, whispers of a pullback to $110K are circulating. But here’s the twist: that dip could be the catalyst for the next leg up. Traders itching for a ‘buy the damn dip’ moment may soon get their wish.
Why $110K matters
It’s not magic—it’s liquidity. A retreat to this level would shake out weak hands, reset leverage, and lure institutional players waiting for a ‘discount’ (because even crypto whales love a sale). Meanwhile, retail traders will panic-sell at the bottom—classic.
The cynical take
Wall Street will call it ‘healthy consolidation’ while quietly stacking sats. Meanwhile, your cousin who bought at $120K will post ‘I told you so’ memes. Crypto never changes.
Bottom line: Volatility isn’t a bug—it’s Bitcoin’s signature. Whether it’s a springboard or a trapdoor depends on which side of the trade you’re on.
Bitcoin Needs a Breather
In its market update, QCP Capital noted that the latest market correction coincides with a “seasonal slowdown” in trading activity as the summer holidays approach, while US equities drift sideways, which points to exhaustion after a solid run since early July.
Despite multiple headwinds, ranging from elevated base tariffs to geopolitical tensions over Russian oil purchases, equities have held firm. More importantly, the S&P 500’s latest gains are disproportionately driven by NVDA’s surge to fresh record highs, echoing the index’s MOVE to new peaks while the broader Magnificent Seven continue to edge up.
Meanwhile, the dollar index (DXY) remains down 10% year-to-date, which has driven performance across USD-denominated assets, including equities, gold, and Bitcoin, though in real terms these assets remain below prior highs when adjusted for the weaker dollar.
QCP said that with net USD positioning now short, although not yet extreme, the risk of a sharp dollar rebound is rising, which could trigger a correction across risk assets. US inflation remains stuck at 2.5% with little sign of further softening, thereby keeping markets vulnerable to sudden price shocks, even as the Fed maintains guidance for potential rate cuts in the next quarter. This has introduced uncertainty around the timing of any policy pivot.
Against this backdrop, QCP said it remains structurally bullish on BTC and views a potential retracement toward the previous cycle high around $110,000 as a healthy consolidation level for the rally.
ETH Defies Seasonal Lull
Ethereum is also showing relative strength. The altcoin’s trajectory is being supported by treasury diversification initiatives from SBET and increased ETH accumulation by corporates following this lead.
The firm said that such moves could continue to bolster resilience across crypto markets despite the seasonal lull and the risk of a temporary dollar bounce weighing on broader risk sentiment.
ETH has surged by more than 33% over the past month and is trading above $3,400. Market strategist Tom Lee predicted that the leading altcoin is set to surge past its 2021 all-time highs as stablecoin growth and real-world asset tokenization drive ETH demand.
