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Bitcoin (BTC) is trying to reclaim a crucial area amid its recent price recovery, which could propel the flagship crypto toward new highs. Some analysts suggested that BTC is preparing for the “final resistance,” while others warned that it still risks a potential pullback to lower levels.

Bitcoin Rally Eyes Next Resistance

Bitcoin has finally regained significant bullish momentum after printing a massive daily candle on Monday. The flagship crypto recently lost its post-all-time high (ATH) range of $106,800-$109,700, sparking concern among some investors.

Amid the recent market pullbacks, which began in late May, the flagship crypto also registered some volatility, losing key levels as support and hitting a one-month low near the $100,000 level last week.

However, BTC reclaimed the $105,000 mark over the weekend before surging above the $106,800 crucial resistance on Monday. Following this performance, analyst Rekt Capital stated that Bitcoin has successfully retested the $104,400 re-accumulation range high resistance as new support for four weeks.

He highlighted that BTC was “rebounding from this new support base in an effort to transition into Price Discovery again.” Additionally, Bitcoin ended its two-week downtrend, recording a Daily Close around the $110,500 area.

Per the analyst, BTC “has skipped through the $106,600-$109,443 Daily Range entirely,” and is “once again positioning itself like in late May for a retest” of the range’s high as support, which propelled the price to its ATH last month.

A daily close above the $109,443 level would set up BTC for a revisit of the “final Daily resistance,” around the $111,723 mark, before a new ATH. The analyst also affirmed that reclaiming the “final weekly resistance” of $108,900 as support would also add to BTC’s momentum.

BTC In A ‘Dangerous Area’?

Analyst Crypto Jelle suggested that turning the $108,000 price area into support could send Bitcoin to the price discovery phase, potentially targeting the $120,000 mark. He noted that previous unsuccessful breakout attempts failed to reclaim this level, but that the cryptocurrency is currently holding this area.

Based on a multi-month pattern, Jelle also reaffirmed its $140,000-$150,000 target for BTC’s cycle top. The analyst highlighted a major inverted Head and Shoulders pattern forming since the end of 2024.

According to the post, the pattern is “nearing completion” after the recent price drop formed the right shoulder, while the neckline sits around the $111,000 mark. A breakout above this level could send Bitcoin to Jelle’s cycle top target.

Altcoin Sherpa considers that BTC’s chart “looks pretty good” in the high-time timeframes, suggesting that he will be “bullish until shown otherwise.” However, he warned that Bitcoin is “still in a dangerous area” as it could drop to lower levels if it doesn’t reclaim the $110,000 level.

To Sherpa, “it’s logical to assume some sort of pullback is going to come in the red supply zone,” which sits between the key resistance line and its ATH level. Meanwhile, Ali Martinez highlighted on X that BTC’s most important support area sits between the $102,770 and $106,090 levels, where 2.21 million addresses bought 1.39 million BTC.

As of this writing, Bitcoin trades at $109,995, a 3.6% increase in the weekly timeframe.

Bitwise Chief Investment Officer Matt Hougan argues that the best way to build a "complete crypto portfolio" is not just allocating to Bitcoin and other base layer assets like Ethereum and Solana or applications further up the stack such as Uniswap, but crypto-related stocks too — with Circle's recent IPO being a case in point.

Circle, the issuer of USDC, went public last Thursday under the ticker CRCL in one of the hottest IPOs in years, Hougan noted in a memo to clients late Tuesday. The offering was 25x oversubscribed, priced above the indicated range at $31, and soared 167% on day one. As of Tuesday's close, the stock is trading at $105.91, according to The Block's Circle price page, with a market capitalization of $28 billion — about half the size of Coinbase and Robinhood, for comparison.

Investors are evidently eager for CRCL exposure — a company at the center of the stablecoin ecosystem — in a sector Hougan describes as crypto's second killer app, after Bitcoin. "Over the past five years, stablecoin AUM has grown from just over $4 billion to $250 billion, and the U.S. Treasury Department projects they could top $2 trillion by 2030. It's hard to find another industry where the government’s base case is 700% growth in the next five years," he said.

"[The issuers] make money by taking the interest income from the Treasuries; stablecoins do not pay a yield," Hougan continued. "It's a simple business, but a good one. With short-term Treasury rates around 4%, stablecoins today generate around $10 billion in high-margin revenue for issuers. If stablecoin AUM grows to $2 trillion, that will turn into $80 billion/year."

A 'complete crypto portfolio'

Beyond bitcoin, a key crypto debate is where value will accrue: at the base layer (like Ethereum or Solana), which powers the ecosystem, or higher up the stack in apps such as Uniswap that generate revenue, Hougan said.

While many crypto natives don't stray beyond decentralized ecosystem investments, the Bitwise CIO argues that crypto-related stocks like Circle are also a classic application play — leveraging the infrastructure of public blockchains but only paying a small fee for the privilege.

"Put differently, Circle can issue a stablecoin on Ethereum for fractions of a penny, but it is immediately accessible by hundreds of millions of people in nearly every country in the world; can be transferred anywhere in the world almost instantly at very low cost; can be used in DeFi applications; can be programmed through smart contracts; and so on," he said. "Just as, thirty years ago, the internet opened up content production on a global scale — suddenly, anyone with an internet connection could publish content that could be read by anyone in the world, instantly — public blockchains do the same for finance. It’s software anyone can build on."

It's not just Circle — there are a growing number of crypto equities using blockchains to build new businesses. Coinbase earns from its Layer 2 Base network, Galaxy brings in around $100 million annually from staking, and Mastercard runs a platform that integrates with blockchains such as Ethereum and Avalanche to help businesses borrow, lend, and make cross-border payments more efficiently, Hougan noted.

"All of this is to say, we believe many parts of the crypto ecosystem will thrive over the long term in a symbiotic way. The core infrastructure will grow more valuable as more applications use it, and the applications will become valuable as the infrastructure continuously improves," he said. "Of course, it's impossible to know whether more value will accrue to the blockchains themselves or the companies that are building on them. It's why I think the best way forward is to own them both."

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The House Financial Services Committee has advanced the CLARITY Act, a landmark crypto market structure bill. 

The legislation passed the major hurdle with a vote of 32-19. It secured some minor bipartisan support, with Rep. Ritchie Torres (D‑NY) and Rep. Cleo Fields (D-LA) joining the Republicans to advance the legislation. 

The bill aspires to establish a clear regulatory framework for cryptocurrencies. 

It stipulates that the CFTC will oversee digital commodities while the SEC retains authority over investment contracts. Over time, some tokens may no longer be subject to SEC oversight. The two agencies are supposed to collaborate with each other in order to establish a cohesive regulatory framework.

"The CLARITY Act incorporates ideas and feedback from stakeholders, experts, and members of Congress from across the ideological spectrum. Crucially, this bill is going to cement the U.S. as the center of innovation in the digital asset space," Rep. Bryan Steil (R-WI) said. 

The advancement of the bill is seen as another major legislative win for the cryptocurrency community.

Faryar Shirzad, chief policy officer at cryptocurrency exchange Coinbase, has stated that this could be one of the biggest weeks for crypto in terms of crypto policy:

"By Friday, we could see clear rules around stablecoins pass the Senate and productive markups of the CLARITY Act in two House Committees," he said.