Bitcoin is retesting a key breakout zone near $108K, previously a strong resistance area, now acting as support.
The Ichimoku Cloud remains bullish, but long upper wicks suggest resistance and possible short-term profit-taking.
A hold above $107K may trigger a fresh rally; failure could lead to a drop toward the $104K support zone.
Bitcoin is currently testing a crucial price zone following a breakout that lifted it above a key resistance level. The asset, which reached a high of $111,800 earlier this week, has since retraced to $108,070, marking a 2.3% decline over the last 24 hours. The move places BTC directly on top of a previously established resistance zone, now being examined as potential support.
The market is currently pausing to determine if the recent rally is real. This range, valued between $107,000 and $111,000, provided a strong top during several months of trading left-right. Bitcoin is currently in a range at its upper limit, so if it successfully tests the zone from above, the rally could be further validated.
Technical Levels Define Market Structure
Bitcoin’s price pattern indicates that it is moving away from consolidation and into the beginning of a trend. Previously, the asset exited a downward trend, moved above the Ichimoku Cloud and cleared resistance from above. At this stage, a retest is taking place, where $107,156 has been set as the support and $111,253 as the resistance level.
If BTC moves above resistance and recovers from support, the breakout might be proved and this could lead to an upcoming rally. If Bitcoin loses this price level, it might decrease and buying power may not hold.
Indicators Point to Bullish Bias, But Risk Remains
The Ichimoku Cloud is still showing favorable signs for bulls because Bitcoin is above the cloud. The future outlook in the cloud is green which shows there could be lasting upward movement. Yet, there have been many long upper wicks in candle charts, showing that buyers are running up against resistance at upper levels.
Source: (X)
The price zone around $108,000–$109,000 is likely to remain a battleground in the short term. Volume and sentiment will play a role in determining whether bulls can maintain control.
Bitcoin Bullish and Bearish Outlook
With positive trends, Bitcoin might exceed its present price and touch the $111,253 barrier, reaching $115,000 if more push comes into the market. If sellers break through $107,000, the price could fall once more, pushing it back to the $104,500–$105,000 range.
Overall, Bitcoin’s current retest is a technical turning point. Its outcome will likely shape short-term investor sentiment and guide price action across the broader crypto market.
