Bitcoin Teeters: Will $105K Support Hold After $110K Rejection?

Bitcoin bulls just got a reality check—the king crypto slammed into a wall at $110,000 and now eyes a potential 5% drop. Here''s the breakdown.

Key Levels to Watch

• Resistance: $110K (today''s rejection zone)
• Support: $105K (next major psychological floor)

Market Mechanics at Play

Liquidity hunters are circling—those who bought the rumor of $110K+ are now selling the news. Classic profit-taking meets overleveraged longs getting liquidated.

Why This Pullback Could Be Healthy

Every bull run needs cooldowns. A dip to $105K would shake out weak hands and reset derivatives markets (looking at you, perpetual swap funding rates).

The Cynical Take

Meanwhile, Wall Street ''experts'' who called Bitcoin dead at $20K are now drafting ''I told you so'' tweets for when it hits $99,999.99.

Bottom Line: This isn''t 2021—institutional flows and spot ETF volumes suggest any dip gets bought. But in crypto, even corrections come with 24/7 volatility and a side of schadenfreude.

Bitcoin Could Drop For Shallow Pullback

In the analysis, Thomas explained what is happening with the Bitcoin price and why the pullback could happen. This begins with the breakout after falling toward $100,000 and then bouncing back again. The digital asset was able to quickly clear multiple fair value gaps on the 4-hour timeframes to claim its spot above $110,000.

The crypto analyst explains that this MOVE has triggered a shift in the sentiment toward the positive, and this has been followed by rising volumes, as well as impulsive candles. In all, this is quite bullish for the cryptocurrency. However, there is still a risk of a price decline from here.

After filling multiple fair value gaps with strength, the crypto analyst believes this has set a precedent for the Bitcoin price. He expects the same pattern to play out for the cryptocurrency, which includes a rapid rise before a shallow pullback, and then a continuation from there.

BTC Pullback Into $104,000 Territory

The bitcoin price recovery above $110,000 seems to have created a fair value gap below $107,000, which the crypto analyst believes will need to be filled. If this is the case, then it is possible that the price rally will not continue until this condition is fulfilled. Nevertheless, a pullback to the level would not be bearish, but rather provide a bounce-off point for the price recovery.

Thomas referred to this trend as “a classic breakout-fill-continue sequence”, and the next thing in line is to fill the fair value gap. According to the shared chart, the crypto analyst sees the pullback taking the price back down below $105,000 and into the $104,000 territory before its next bounce. This WOULD mean a 5% pullback, and going by the trends from this year so far, something that would be bad for altcoins.

However, the conclusion remains that bitcoin is still bullish from here. Once the fair value gap is filled, a strong push upward is expected, possibly toward new all-time highs. “I’m expecting a controlled retracement to fill the new 4H imbalance, after which price could continue pushing toward the major resistance area,” the analyst said. “The momentum is clean and structured—until that changes, continuation remains the more likely path.”