Bitcoin is retesting a key confluence zone including the 50-day MA/EMA and a recent trendline breakout.
A failure to hold above $105K may trigger a move toward the $100K psychological support level.
Trading volume has spiked by over 32%, signaling rising market activity despite short-term price weakness.
Bitcoin is once again testing a key technical support area, sparking cautious attention from market participants. The cryptocurrency, currently trading around $105,048, has retracted after failing to establish momentum above the $111,990 resistance.
Now, price action is pressing into a critical confluence zone: the 50-day moving average and the trendline it previously broke out from earlier this month. This level may define whether the short-term outlook remains bullish or slides into further uncertainty.
Technical Support Cluster Under Pressure
The current retest follows a failed double-top formation near the $112,000 mark—a pattern often associated with reversals. As the rally lost steam, sellers regained control, pushing Bitcoin below $107,000. The decline has brought the price to a zone defined by both the 50-day exponential moving average (EMA) and simple moving average (SMA), alongside a previously breached descending trendline.
https://twitter.com/CryptoJelleNL/status/1933417939480277104
Chart analysis shows that this intersection has held up as support in earlier sessions. Notably, this area also aligns with the 0.618 Fibonacci retracement level taken from the recent upward leg. Traders often view this region as a technical "must-hold" for bulls aiming to preserve upward momentum.
Volume Rises, But Sentiment Remains Divided
Although the price has fallen by 1.76% over the past 24 hours, the 24-hour volume of Bitcoin is significantly higher—32.33% higher at $70.87 billion. This is reflective of heightened market activity and not directional conviction, analysts contend, and interpret this as a reflection of indecision as the players in the market hold back for a clearer signal before assuming new positions.
If the current support fails to hold, the next significant zone appears around the $100,400 level, which marks the previous swing low and psychological support near $100,000. Holding above this region is seen as essential to avoid cascading downside risk.
What’s Next: Hold or Fold?
The larger picture rests on Bitcoin's behavior around this support. A strong bounce would confirm bullish plans, with perhaps another attempt at breaking above $112,000. A breakdown would reverse sentiment bearish and have eyes on lower supports and a possible trend reversal.
In the absence of macroeconomic catalysts, technical structures remain in focus. The price structure now calls for clarity, and how Bitcoin navigates this juncture could shape the broader market narrative through the rest of June.
