Bitcoin’s Resistance at $104K Amid Market Turmoil

Key Highlights

Bitcoin’s Current Stance: Bitcoin is hovering around the $104K mark as global uncertainties and $1.2 billion in liquidations disturb market stability.
Aerodrome Finance Surge: Aerodrome Finance experiences a striking 35% surge following Coinbase’s announcement of integrating its services with Base DEX.
Optimism in Crypto Despite Instability: While the market faces temporary challenges, there are signs of hope in the crypto landscape.

Bitcoin may be lacking excitement for traders right now, but one altcoin is currently generating significant buzz—thanks to a remarkable partnership with leading U.S. crypto exchange, Coinbase.

Current Market Overview

The cryptocurrency sector is relatively stable at a market valuation around $3.25 trillion, showing little movement over the last day. This stagnation might be a relief for investors who faced considerable losses earlier this week. However, a broader view reveals a positive trend; the total market cap has increased by approximately $500 million over the last three months.

The Crypto Fear & Greed Index is at 65, indicating a neutral-to-bullish market sentiment, which encourages buying during dips rather than panic sales. Geopolitical strife involving Israel and Iran, along with potential U.S. involvement, combined with $1.2 billion in leveraged liquidations, has introduced volatility.

Despite this, institutional interest in cryptocurrency remains strong, with U.S.-based ETFs enjoying net inflows over the past fortnight. Notably, BlackRock’s iShares Bitcoin Trust has surpassed $70 billion in assets under management.

Bitcoin: Testing Key Support Levels

Bitcoin is currently trading near $103,710, close to the $104,000 support line. The daily trading chart indicates that Bitcoin is in a consolidating phase, which will dictate its next significant movement. Trading volume has dropped to $49.4 billion, marking a 10% decrease compared to the previous day.

From a technical analysis perspective, Bitcoin sits at a critical juncture, retaining a neutral to bearish stance based on its recent pattern showing lower highs ($112K, $110K, $108K) since May. This implies that while bullish movements are possible, they aren’t sustained enough to generate momentum.

The Average Directional Index (ADX), which assesses trend strength, currently rests at 16, indicating a "No Trend" zone. This suggests that Bitcoin is in a phase of consolidation rather than following a strong trend. Such sideways price action might often foreshadow significant shifts in either direction. Typically, a trend is deemed robust when the ADX exceeds 21 points.

Additionally, the Relative Strength Index (RSI) is around 45, placing Bitcoin in a neutral range as traders await the next market developments.

The 50-day and 200-day Exponential Moving Averages (EMAs) display long signals with an intact golden cross pattern, indicating a positive long-term outlook. A golden cross occurs when short-term prices (represented by the 50-day EMA) surpass the long-term average (200-day EMA), generally regarded as a bullish indicator.

Important Technical Levels

Immediate resistance: $106,500 (recent rejection zone)
Major resistance: $108,800-$110,000 (psychological zone with persistent selling pressure)
Critical resistance: $112,000 (historic peak region)
Immediate support: $102,000-$103,000 (current test zone)
Major support: $100,000 (psychological benchmark)
Critical support: $93,200 (200-day EMA level)

AERO: Resilient in a Bearish Market

While Bitcoin stabilizes, Aerodrome Finance, trading as AERO, has emerged as a standout performer. With an impressive rise of over 80% in June and a 14.78% increase today, it currently trades at $0.8379. Aerodrome positions itself as "the central trading and liquidity marketplace" on Coinbase’s Ethereum layer-2 network, Base.

Last week, Aerodrome revealed its DEX would be integrating directly with the main Coinbase app—an application already used by millions. This connection is expected to provide significant exposure, as the Coinbase app boasts around 10.8 million monthly active users. The immediate bullish sentiment surrounding AERO is evident, given its market capitalization of $680 million against a fully diluted valuation of $1.3 billion.

AERO Technical Analysis

The daily chart indicates strong bullish momentum for AERO. The price has decisively breached the critical resistance at $0.78, confirmed by high trading volumes, reassuring short-term buyer interest.

With an ADX of 30, AERO demonstrates moderate to strong trend strength, in contrast to Bitcoin’s directionless ADX of 16. AERO’s higher ADX implies a more pronounced directional movement is underway, supported by increasing momentum.

The RSI stands at 65.96, indicating bullish conditions without reaching overbought territory above 70, allowing for potential continued upward movement. The 50-day EMA is trending upward and is poised to intersect with the 200-day EMA, possibly forming a golden cross—a sign of sustained bullish trends.

Key Technical Levels for AERO

Immediate resistance: $0.88 (23.6% Fibonacci level and weekly high)
Major resistance: $1.30 (50% Fibonacci retracement and a key psychological level)
Extended target: $1.40-$1.60 (should momentum persist)
Support levels: $0.70 (psychological level)
Next support: $0.66 (weak target)
Critical support: $0.55

Disclaimer: The insights and perspectives presented here are for informational purposes and should not be construed as financial, investment, or other types of advice.