A trader stated that Bitcoin needs to maintain momentum as it approaches its historical high, as a drop to $108,000 could trigger a bearish downtrend.

"At this point, you don't want to see it deviate below $108,000 again," cryptocurrency analyst Daan Crypto Trades said on Thursday, adding that Bitcoin (BTC) is "trying to break through."

"Any close around the $110,000 area is good," he added. According to CoinMarketCap data, Bitcoin reached $110,498 on Thursday but has since retraced to $109,250. It is about 2.5% lower than its historical high of $111,970.

Daan's chart analysis indicates that if Bitcoin falls back to $108,000— a level it just reclaimed on Wednesday— it could trigger a bearish downtrend, potentially pushing the price below $100,000, and possibly down to $96,000.

Bitcoin has not fallen below $100,000 since June 22, when it briefly touched $98,900 during the conflict between Israel and Iran. According to CoinGlass data, falling below this level again would wipe out approximately $2.67 billion in long positions.

Several other analysts seem confident in Bitcoin's upward trend. Cryptocurrency analyst Miles Deutscher stated, "It's hard to be bearish here."

Meanwhile, cryptocurrency trader CryptoFayz explained through charts that if Bitcoin does break through the current historical high of $111,960, it could continue to rise to $116,000.

Similarly, Markus Thielen from 10x Research told Cointelegraph on Thursday that this price level could be reached by the end of July, citing strong inflows into spot Bitcoin ETFs, uncertainty from the Federal Reserve, and a rapid decline in Bitcoin supply on cryptocurrency exchanges.

However, Daan noted that Bitcoin's current consolidation appears slightly different from the consolidation seen earlier in this cycle. "It still follows the same pattern of stagnation, deviating downward, reclaiming the range, and then slowly moving higher," he said, adding that it lacks "actual breakouts and continuations."

James McKay, founder of McKay Research, stated, "The longer we have these cyclical, multi-month consolidations, the more it will deviate from the established path of typical four-year cyclical behavior."

Related: Bitcoin (BTC) price hits new highs, with "divergence" making $110,000 a key resistance

This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making decisions.

Original article: “Bitcoin (BTC) Must Hold Above $108K or Face Bearish Spiral Risk”

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