Bitcoin Double Bottom Signals $110K Rally, CME Gap Poses Pullback Risk
Bitcoin formed a textbook double bottom near $100K and closed above its 50-week moving average, igniting bullish momentum toward a $110K–$111.3K test. On-chain metrics show the Stablecoin Supply Ratio (SSR) has dropped to 13.1, indicating ample liquidity waiting on the sidelines. However, an unfilled CME futures gap at $103.1K–$104K and a major resistance zone near the 85th-percentile cost basis around $108.5K could trigger short-term pullbacks. CryptoQuant data also reveal short-term holders on Binance have increased their BTC balances from 5,000 to 8,700 BTC, pointing to potential sell pressure around the $112K breakeven level. Traders should watch CME gap fills, order-block retests in the $101K–$102.5K range, and resistance at $108.5K for clues on renewed bullish momentum or correction.
Bullish
The double bottom near $100K and a weekly close above the 50-week moving average point to a strong bullish setup, reinforced by a low SSR indicating abundant stablecoin liquidity ready to enter the market. Although the unfilled CME gap at $103.1K–$104K and the 85th-percentile cost-basis resistance around $108.5K may cause short-term retracements, overcoming these levels would likely propel Bitcoin toward the $110K–$111.3K zone. CryptoQuant’s data showing rising short-term holder inflows to Binance suggests potential sell pressure near $112K, which could cap immediate gains but also set up later support. In the short term, traders may see gap fills and order-block retests, while a sustained breach of $108.5K would reaffirm a bullish trajectory.