Bitcoin hovers near key breakout zone as XLM, RAY rally double digits

Bitcoin remained rangebound as bulls sought to hold the flagship cryptocurrency above the $109,000 mark.

The broader digital asset market advanced in tandem, with total crypto market capitalisation up approximately 1.5% to $3.46 trillion by late Asian trading hours on Wednesday.

Despite Bitcoin trading less than 3% below its all-time high, repeated failures to breach $110,000 have tempered short-term optimism.

Still, sentiment remains firmly in the greed zone, with the Crypto Fear & Greed Index holding at 66, a sign that investors are continuing to position for a potential breakout into price discovery.

While not yet in a full-fledged alt season, altcoins had started showing signs of momentum, with most major tokens trading in the green at the time of writing.

Why is Bitcoin price stuck?

Bitcoin has been trading between a tight range of $107,475 and $110,307 over the past week, with a number of market forces currently dictating price action.

On the upside, anticipation of rate cuts and broader trade deals has underpinned bullish expectations. 

Analysts say traders are watching macro developments closely, particularly as the US moves toward finalising trade agreements with several major economies. 

Letters sent by former President Trump to various negotiating parties, reaffirming the August 1 deadline, have also been viewed as strategic pressure to speed up deals.

A broader agreement is seen as risk-positive and could trigger inflows into both equities and crypto.

Meanwhile, expectations of a rate cut by the Federal Reserve as early as September have further supported long positioning. 

Polymarket odds currently price a 50% chance of a September cut, with rising probabilities for multiple rate reductions this year. 

Such easing could reduce the attractiveness of bonds and drive capital into higher-risk assets like Bitcoin. 

There’s also the proposed Big Beautiful Bill, which is expected to expand liquidity across markets, potentially spilling over into crypto.

From a technical standpoint, however, Bitcoin’s price continues to be squeezed between heavy sell-side liquidity near $110,000 and a support floor around $107,000.

According to the liquidation heatmap, significant short liquidation levels are stacked between $110K and $114K, creating a dense resistance wall. These layered orders are absorbing bullish momentum and forcing frequent rejections at each test of the upper band.

This resistance is not limited to intraday moves. The 1-week heatmap confirms that the liquidity build-up above $110,000 is a structural zone, formed over multiple sessions. 

To clear it, Bitcoin would likely require a combination of rising open interest and strong spot demand, factors that remain elusive amid broader market caution.

Meanwhile, profit-taking activity remains elevated, especially during New York hours, as sellers step in to cap rallies near key resistance.

Spot liquidity data shows intense exchange order-book activity around $110,000, with traders hesitant to chase breakouts amid macro uncertainty.

At the same time, downside risk is being cushioned by aggressive buying below $107,000. Liquidation levels and bid interest in this zone suggest that bulls are actively defending lower levels, allowing Bitcoin to bounce quickly on dips. 

This has resulted in a tightly wound price structure, leaving the asset vulnerable to sharp, short-lived moves on both sides.

Adding to the complexity is the role of the U.S. dollar. The DXY index recently fell to its lowest level since early 2022, with analysts noting that it’s now trading near historical support versus its 200-day and 365-day moving averages.

CryptoQuant data shows that this zone has historically been favourable for Bitcoin, though the current price action has yet to reflect that trend. 

According to QuickTake blog contributor DarkFrost, as the dollar weakens, investors often rotate toward alternative assets, a pattern that could fuel a delayed BTC rally.

“This tool serves as a valuable indicator for identifying early bull market phases and periods of euphoria, not because of pure technical triggers, but because it reflects increasing liquidity potentially flowing into crypto markets,” DarkFrost explained.

What’s next for Bitcoin?

Most market analysts were bullish on Bitcoin’s short- to mid-term outlook, though expectations remained measured. 

Many see the current chop as a reset before trend continuation, with several chart watchers flagging key signals that could confirm the next major move.

According to trader BitBull, Bitcoin’s 3-day Relative Strength Index and price action were forming an inverse head and shoulders pattern, a classic bullish setup often seen ahead of major breakouts.

In a post to X, he said a breakout would likely require one of two things: either a 3D close above $110K or an RSI breakout past 70.

If either plays out, he added, Bitcoin could enter an “up-only rally” lasting three to four weeks.

Fellow analyst Jelle was equally optimistic, predicting a potential move to $130,000 if bulls manage to reclaim $110K with conviction.

“#Bitcoin broke the bullish flag, retested it, and now pushes higher. Clear $110k, and $130k is the next target,” the analyst wrote on X.

Veteran commentator The Crypto Monk similarly observed a “typical pattern” unfolding, one that he said often appears just before a breakout.

When writing, Bitcoin was hovering just above the $109,000 mark, up nearly 1% in the past 24 hours.

Top altcoin gainers

In the past 24 hours, the altcoin market saw a modest 1% rise, reaching $1.28 trillion, with about $18 million flowing in. 

The uptick coincided with a rise in the Altcoin Season Index from 22 to 27, hinting that more top 100 altcoins are starting to outpace Bitcoin.

It’s a sign that investors might be slowly turning their attention away from the legacy crypto asset and showing renewed interest in the broader altcoin space.

Ethereum, the leading altcoin by market capitalization, rose 3.5% over the past 24 hours to trade at $2,650. Other major altcoins, including XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), also posted gains in the 2% to 5% range.

Stellar (XLM) led the gains with a 15% rise on the day, followed by Raydium and SPX6900, which followed with gains of 11.8% and nearly 9%, respectively.

Stellar: XLM’s price picked up pace today after the Stellar Development Foundation released a new test version of its core software, marking a major step toward a pending upgrade to the Stellar blockchain scheduled for August.

The upgrade is expected to improve how the network supports smart contracts and decentralized apps, making it faster and more scalable. Project-related developments tend to spark renewed investor interest, as they signal long-term growth potential.

Raydium: Raydium’s recent price uptick can be attributed to the rapid expansion of BonkFun and LaunchLab, two integrated platforms that now form the core infrastructure for meme coin activity on the Solana network. 

BonkFun serves as the primary launchpad for new meme tokens, while LaunchLab manages token minting, liquidity provisioning, and volume routing, functions that are fully executed through Raydium’s platform.

This combined setup now facilitates over half of Solana’s meme coin activity, generating approximately $900,000 in daily fees. Of that, an estimated $110,000 is consistently allocated to buy back RAY tokens from the market. 

Periodic buybacks tend to generate sustained buying pressure, which is likely supporting RAY’s current price action.

SPX6900: The viral memecoin is extending its rally for a third straight day despite no clear catalyst, driven by strong community support and sustained grassroots momentum.

With year-to-date gains nearing 400%, long-term holder confidence and retail backing continue to fuel the memecoin’s steady climb.

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