Bitcoin's recent rise above $100,000 has kept the market ahead as bullish momentum seeks 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 time.
This variability is intense allowed Bitcoin to achieve a daily close above a key confluent resistance level that had ended its price action for the past month. Despite this progress, Bitcoin continues to test the upper limit of $106,000, and a decisive rejection at this level could trigger a decline, which could move the price as low as $91,000.
Bitcoin successfully closes above confluent resistance
according to technical analysis from Crypto analyst Rekt Capital, Bitcoin has managed to close daily above a major confluent resistance level. This was noted in a technical analysis of Bitcoin's daily candlestick price action posted on the X social media platform and highlights a key event in Bitcoin's rally. That confluent resistance is defined by two essential elements: a horizontal resistance trend line at $101,165 and a downward trend line, which has consistently marked lower highs since Bitcoin reached its peak a- ever of $108,135 on December 18, 2024.
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Since breaking out of this confluence area, Bitcoin has he managed to push towards $106,000but candlestick patterns are starting to show a slowdown in momentum. In particular, Bitcoin has formed a hammer candlestick and a doji candlestick in consecutive days, both of which are traditionally associated with a slowdown in movement or uncertainty in the market. This suggests that the bullish trend could be fading so quickly and opens up the possibility of a move down to reconfirm the confluence zone from which it started.
BTC needs to hold above this level
Holding a position above the commercial level is essential to determine Bitcoin's next move. As Rekt Capital pointed out, a sustained rejection at the $106,000 level could cause a downward move to reconfirm the confluence area, which is indicated by the green circle in the chart above.
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If Bitcoin reconfirms this zone, two scenarios could emerge. The first outcome, and a more optimistic outcome, would involve a successful retest and then a rebound at the confluence area. This behavior is typical of price action after a breakout, where a pullback reinforces the new support and allows the price to gather momentum for another leg up.
On the other hand, the second position is more bearish. If Bitcoin does not hold above the confluence support, the cryptocurrency could face more selling pressure and encourage deeper correction.
According to Rekt Capital analysis, $91,070 and $87,325 are the next important support levels to watch. A decline to these levels would represent a major pullback and could reset market expectations in the short term.
today stands at 106 100 $.
Featured image from Unsplash, chart from Tradingview.com
