Bitcoin is making waves in the crypto market, holding strong above the crucial $105,000 mark after experiencing volatility and brief dips to $100,000. Following a resilient recovery, BTC has surged by 6% from last week’s lows and is now gearing up to challenge the tough resistance zone between $110,000 and $112,000. Traders are particularly focused on whether Bitcoin can break this barrier, as it has previously limited upside momentum for the past month.
Top analyst Daan recently provided insightful technical updates emphasizing Bitcoin’s significant rebound after reclaiming its bull market support band. Daan noted that since this reclaim, BTC has “not looked back” and maintains a remarkably clean high timeframe trend. Remarkably, this cycle has proven to be one of the easiest for long-term investors, with corrections throughout the rally limited to approximately 30%, showcasing a new level of stability for this historically volatile asset.
The ongoing structural strength mirrors the increasing confidence seen among long-term holders, who are continuing to back the price even amid broader macroeconomic uncertainties. As Bitcoin consolidates just beneath its resistance levels, a decisive breakout above $112,000 could pave the way for a new phase of growth, potentially sending BTC into uncharted territory with new all-time highs.
Currently, Bitcoin sits just 4% beneath its $112,000 peak, indicating it is preparing for a major expansion phase. Following a notable 50% rebound from the lows seen in April, the crypto market seems to be poised for a significant uplift. However, the resilience exhibited by Bitcoin suggests that traders should stay vigilant. Daan highlights the need for caution as extended trends can sometimes lead to complacency, which could change the dynamics if support is breached.
As Bitcoin attempts to accept higher price levels, it has recently shown strong momentum, trading at $107,490 following an exhilarating breakout from a consolidation phase. This recent movement comes after holding support at $103,600 and forming an ascending triangle pattern, leading to a surge above all major moving averages including the 34 EMA ($105,354), 50 SMA ($105,026), 100 SMA ($106,247), and 200 SMA ($105,255). The confirmation of this bullish momentum sets the stage for a potential test of the $109,300 resistance, which has historically capped price action since late May.
The current structure indicates rising lows accompanied by strong accumulation surrounding key moving averages, signaling renewed buyer interest. This bullish trend is further reinforced by an increase in trading volume, thereby reducing the chances of a false breakout. If Bitcoin manages to maintain its position above $106,000, the outlook remains positive for a continuation of this upward trajectory. However, any signs of rejection at the $109,300 resistance could lead BTC back towards the support zone between $105,000 and $106,000, reiterating the need for caution as traders monitor the evolving market landscape.
