Watch Bitcoin Price: Bulls Eye $112K as Market Holds Support at $107K

Bitcoin is traded at $107,259 with a market capitalization of $2.13 trillion on May 25, 2025. In the past 24 hours, its trading volume reached $24.98 billion, with a daily price range from $106,954 to $109,225, reflecting short term volatility and active market participation. The hourly BTC/USD chart shows that bitcoin is trying to form a foothold after a small, steady downtrend around $106,765. Recent price action indicates the formation of a potential double bottom or a subtle bullish divergence between price and volume. The volume fell as the price fell but showed a slight increase accompanied by a green candle, signaling a potential momentum shift. Speculative opportunities may arise for day traders actively participating in the price range between $107,000 and $107,300, with a tight stop loss below $106,700. More cautious participants may consider entering after a breakout above $108,000, aiming for a short term target between $108,800 and $109,500 while monitoring stop loss orders as the price increases.

On the 4-hour chart, bitcoin is following a rounded top pattern, beginning a downward structure after the peak of $112,000. A series of lower highs and lows have emerged, with volume surging during the decline from $111,000 to $107,000, highlighting the dominance of sellers. Short term traders may identify opportunities if the price recovers from the range of $106,500–$107,000 with decreasing selling volume. Conversely, a bullish crossover above $108,500 with supporting volume could represent a valid reversal entry point. Potential exit points lie in the range of $109,500 to $110,000, but a decisive move above $110,000 is needed to change the current trend.

From a daily perspective, bitcoin (BTC) is still in a broader uptrend despite facing rejection at the psychological resistance level of 112,000 dollars. Support is located between 104,000 dollars and 106,000 dollars, an area to watch for stability and potential bullish reversal signals. The volume data from this timeframe highlights the increase in selling during the pullback from $112,000, indicating profit-taking rather than structural weakness. Trend traders should look for strong bullish confirmation near the $106,000 level before initiating long positions, targeting the resistance level of $112,000 to realize profits.

Analyzing the main fluctuations, most indicators show a neutral stance with subtle bearish implications. The Relative Strength Index (RSI) is at 63, signaling a non-committal stance. The Stochastic Oscillator and the Commodity Channel Index (CCI) are at 60 and 81 respectively, both indicating neutral momentum. The average directional index (ADX) is at 33, indicating a lack of dominant trend strength. However, both the momentum indicator at 3.575 and the moving average convergence divergence (MACD) at 3.700 signal sell action, implying short term bearish pressure that traders should consider in positioning. Fibonacci retracement levels across all time frames delineate important support and resistance zones. On the daily chart, key levels include 38.2% at $101,294 and 50% at $97,987, both of which serve as potential accumulation zones in the event that prices continue to decline. The 4-hour chart highlights support levels between $107,199 (61.8%) and $108,116 (50%), aligning with daily recovery zones. Meanwhile, the hourly chart marks key retracement levels at $107,810 and $108,133, reinforcing the support case in the short term around $107,800, especially for traders monitoring the recovery. The moving average (MA) continues to support the long-term bullish outlook. All exponential moving averages (EMA) and simple moving averages (SMA) from 10 periods to 200 periods are currently aligned in a buying mode. Short-term signals are clear with the 10-period EMA and SMA both above $106,890. Long-term confidence is reinforced with the 200-period EMA at $89,658 and the SMA at $93,966, highlighting a broad bullish price structure. This multilayered support suggests that unless significant downward pressure emerges, the overall trend remains constructive, giving investors reasons to be optimistic. Bull's Opinion The alignment of all major moving averages in the overbought region, along with the potential double bottom formation on the hourly chart, supports a continued bullish trend. If Bitcoin holds above $107,000 and regains the $108,500 level with volume confirmation, a new attempt at $112,000 seems feasible. The long-term trend structure remains intact, supporting the upward momentum unless there is any macroeconomic shock. Bear's Analysis Despite the upward trajectory on broader timeframes, the recent rejection of price at the $112,000 level and sell signals from the momentum indicator and the Moving Average Convergence Divergence (MACD) suggest caution. Failure to hold support near $107,000 or breaking below $106,700 could accelerate the move towards deeper retracement levels at $104,000 and $101,294, causing Bitcoin to adjust further. Final Version Bitcoin is at a technical crossroads, with the bullish structure still in effect but facing short term hurdles. Traders should maintain adaptability—prioritizing long term setups above $108,500 and preparing for a deeper support test if $106,700 fails. Confirmation through volume and price action is essential before committing to trades in either direction. Risk management remains paramount during this volatile phase.