Bitcoin has encountered strong selling pressure near the $110,000 level, demonstrating both its recent strength and the market’s caution. Meanwhile, U.S. Treasury Secretary Scott Bessent’s bullish prediction about stablecoins hitting a $2 trillion market cap adds another major narrative to watch.

• Resistance at $110K–$110.5K
  As FXEmpire reports, Bitcoin repeatedly failed to break above $110,500, with clear rejections at that level.
• Key Support Levels:
  • $107,000 aligns with the 50-day EMA, making it an important testing zone.
  • $100,000 marks a long-standing floor near the 50-day EMA from FXEmpire.
    Below this, a dip toward the 200-day EMA becomes plausible.
• Technical Outlook:
  A breakout above $112K could pave the way for a move toward $120,000. Alternately, a sharp pullback to retest support may occur.

Bitcoin Market Drivers & Context

1. Stablecoin Explosion on the Horizon
   Treasury Secretary Scott Bessent predicts the stablecoin market could grow from just over $250 billion today to $2 trillion within a few years. This would significantly boost demand for U.S. Treasuries and bolster crypto infrastructure.
2. Institutional and On-Chain Signals
   • Bitcoin futures open interest is near record highs (~$75 billion) with recent long/short ratios shifting bearish—signaling increased speculative positioning.
   • Large “whales” continue accumulating; realized cap among whale wallets recently hit a record $113.7 billion.
3. Macro Landscape
   Easing inflation, expectations of Fed rate cuts, and a rising ETF presence have been catalyzing momentum.

• Monitor critical levels ($110K, $112K breakout threshold; $107K and $100K supports).
• Use measured risk management—consider stop-losses near support zones and watch for on-chain metrics.
• Track stablecoin legislation and treasury demand—a formal framework could fuel broader crypto adoption.

Bitcoin remains in a pivotal consolidation range between $107K and $112K. A breakout could spark a powerful rally, especially on the backdrop of a swelling stablecoin ecosystem.

However, failure to climb higher may usher a retracement—making technical vigilance essential in the near term.

BITCOIN GUIDES & RESOURCES: