Bitcoin’s recent surge above $100,000 has put the market on edge as efforts to establish a new liquidity zone Beyond this milestone. This push has introduced significant volatility over the past 24 hours, with Bitcoin fluctuating between $99,701 and $106,307 during this period.
This There is intense instability allowed Bitcoin to get a daily close above a key organizational resistance level that had capped its price action for the past month. Despite this advance, Bitcoin continues to test the upper limit of $106,000, and a decisive rejection at this level could trigger a decline, possibly lowering the price to $91,000.
Wikipedia successfully closes over organized resistance
Accordingly Technical analysis from According to crypto analyst Rect Capital, Bitcoin has managed a daily close above a key organizational resistance level. This was noted in a technical analysis of Bitcoin daily candlestick price action posted on social media platform X and underscores a key event in Bitcoin’s rally. The converging resistance in question is defined by two important elements: a horizontal resistance trend at $101,165 and a descending trendline, which Bitcoin has consistently bottomed after reaching its all-time high of $108,135 on December 18, 2024. marking the level.
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After breaking out of this confluence area, Bitcoin has Managed to push to $106,000But candlestick formations are beginning to reveal a slowdown in momentum. In particular, Bitcoin has formed a hammer candle and a doji candle on consecutive days, both of which are traditionally associated with a slowdown in momentum or potential market uncertainty. This suggests that the momentum is slowing down and opens up the possibility of a move down to retest the confluence area, from which it has just been broken.
BTC needs to hold above this level
Maintaining a position above the breakout confluence area is important to determine Bitcoin’s next move. As Rect Capital highlighted, a sustained rejection at the $106,000 level could lead to downward momentum to retest the confluence area, which is highlighted by the green circle in the chart above.
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If Bitcoin retests this zone, two possible scenarios could unfold. The first, and more immediate outcome, would involve a successful retest followed by a rebound at the confluence area. This behavior is typical of post-breakout price action, where a pullback reinforces new support and price Gather momentum for another leg upwards.
In contrast, the second scenario is more bearish. If Bitcoin fails to hold above confluence support, the cryptocurrency may face increased selling pressure and Trigger a deep correction.
According to Rect Capital’s analysis, the next important support levels to watch are $91,070 and $87,325. A decline to these levels would represent a significant pullback and could reset market expectations for the short term.
Bitcoin is currently trading at $106,100.
Featured image from Unsplash, chart from Tradingview.com
