Bitcoin price is now moving inside a tight range between the $104.2K support and $106.8K resistance level.
A breakout above $106.8K could signal a bullish move while a drop below $103.4K may cause more losses.
Bitcoin has tested key areas on both sides and traders now wait for the next breakout or clear breakdown.
Bitcoin is consolidating just under the $106.8K resistance zone after executing a perfect ChoCH to BOS shift and retest. The one-hour chart from Binance reveals structured movements between discount and premium zones. The current level at $105.5K marks a potential pivot for a significant market move.
Source: X
As of June 4, Bitcoin has shown resilience by holding above $104.2K, indicating a continuation of bullish momentum in the short term. However, a downside break below $103.4K may signal a deeper market pullback. Analysts are watching the $106.8K supply zone closely as the next inflection point.
The key question now: Can Bitcoin break through resistance and ignite a new rally toward $110K, or will it retrace?
Bullish Setup or Reversal Zone
Bitcoin’s recent moves reveal a structured pattern with visible change of character (ChoCH), break of structure (BOS), and demand zone retests. The consolidation below $106.8K is occurring after this sequence played out cleanly, suggesting a setup for bullish continuation.
The green zone around $104.2K has acted as an important support, holding firm over several hours. Volume at $38.78K on Binance’s BTC/USD pair reflects market participation as traders anticipate direction. If bulls manage to drive the price above $106.8K, it opens a path toward the premium zone above $110K.
However, a failure to hold this level may trigger a pullback below $103.4K. That zone coincides with the discount area highlighted on the chart. A deeper correction could revisit demand near $102K, marked as the weak low (PWL) zone.
Supply and Demand Zones in Focus
The trading chart clearly outlines areas of supply near $106.8K and demand near $102.4K. These levels define the current equilibrium zone around $105.5K. The next breakout or breakdown will likely emerge from this narrow range.
Buyers are defending the bullish order blocks and holding structure from the June 2 bounce. The breakout from BOS at $104.2K continues to be a vital signal for maintaining upward momentum. On the other side, the premium zone near $111K remains untouched and could act as a long-term target.
The rejection from premium or breakout above current levels may define Bitcoin’s short-term trend. With liquidity thinning and volatility tightening, market participants are bracing for strong directional movement.
Traders Brace for Volatility
With the price stuck at equilibrium, market sentiment remains cautiously optimistic. The bullish scenario hinges on holding $104.2K and pushing toward $106.8K and beyond. Traders are advised to wait for confirmation before entering positions.
The next supply or demand interaction will determine the broader trend. If price breaks above the current range, it could approach $111K quickly. A downside move, however, may revisit support near $103.4K or even lower.
