The price of Bitcoin has recently shown strong upward momentum, starting from $105,200 and climbing all the way to the round figure of $110,000. This wave of increase has broken through the bearish trend line at $106,300 and the resistance level at $107,500, indicating a significant shift in market sentiment.

From a technical analysis perspective, Bitcoin has broken through the 76.4% Fibonacci retracement level of the downward trend, which is an important technical indicator. However, it has encountered significant resistance at the $110,000 level, which happens to be the key resistance point of the 1.236 Fibonacci extension, and is also being suppressed by the 100-hour moving average.

Currently, the market focus is on the key level of $108,000, which is seen as a watershed for bullish and bearish forces. If Bitcoin can break through the $110,000 resistance, the next target may point to the range of $112,000 to $113,200. Conversely, if the price fails to hold the $108,750 support level, it may fall back to $107,200, or even test the key support level of $105,000.

In terms of technical indicators, although the MACD is still in the bullish zone, the momentum has weakened. The RSI indicator remains above 50, indicating that the bulls still have a certain advantage. However, these indicators also reflect that both bulls and bears are engaged in a fierce battle, and there is still uncertainty in the market direction.

At the same time, the on-chain data of Ripple (XRP) has also attracted the attention of analysts. Cryptocurrency analyst CryptoInsightUK pointed out that there is a highly concentrated liquidity area around $2.4 for XRP. Currently, the number of open contracts continues to increase, and the premium is negative, indicating that short positions may be overly concentrated.

Analysts believe that if the XRP price can break through the current resistance level of $2.18, it may trigger a strong short squeeze, leading to a short-covering rally that pushes the price towards the target level of $2.40. The occurrence of this situation could have a ripple effect on the entire cryptocurrency market.

Overall, the cryptocurrency market is at a critical turning point. The performance of Bit will largely influence the direction of the entire market, while other cryptocurrencies like XRP may also experience dramatic price fluctuations due to their unique market structures. Investors should closely monitor these developments and adjust their strategies in a timely manner based on market changes.