Presently, Bitcoin is facing a crucial resistance area that stopped earlier gains in 2025, probably marking a key turning point for the market.
Following the fall below $80K, Bitcoin gained over 25% and has formed support above the last swing lows while regaining upwards momentum.
If this level is broken, Bitcoin may go higher, but rejection could quickly send prices toward the $96K–$98K support area.
Bitcoin entered the new trading week testing a critical resistance zone, hovering just below $105,500—a level marked as the "last area of defense for bears" by technical analysts. After a strong recovery from April lows, BTC appears to be approaching a decisive moment that could shape short-term market direction.
The leading cryptocurrency is currently trading at approximately $104,026, reflecting a modest 0.6% decline over the past 24 hours. The overall uptrend on higher time frames has endured the recent selloff. With the recent surge, Bitcoin is currently approaching a supply zone that has a history of intense selling pressure. Market participants are now watching closely to see if bulls can breach this final resistance barrier.
BTC Tests Crucial Resistance Band
Technical charts show Bitcoin pressing against a resistance band between $103,735 and $105,503. This zone previously served as a ceiling during multiple failed rallies earlier in 2025. The persistence of this range as a rejection point reinforces its importance. Should BTC manage a clear breakout above $105,500, it would signal a shift in market structure and potentially open the door to new yearly highs.
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Analysts note that this zone acts as a psychological and technical pivot. The zone caps the established trading range between January and February, while at the same time providing the last major hurdle ahead of price exploration. Should the bulls win out, the negative sentiment from the last three months could be eliminated.
Recovery from April Lows Gains Strength
Bitcoin’s recent upward trajectory stems from a strong rebound that began in mid-April, when prices dipped below $80,000. Since then, BTC has gained over 25%, with a series of higher lows and strong bullish candles reinforcing buyer interest. This recovery has been supported by growing investor optimism, though overall volume remains moderate.
Most analysts are bullish in the short term, but they still urge caution among market participants. Not only is the level of resistance important historically, but it also risks attracting selling from short-term traders hoping to profit from a market that has gone too far.
Price Discovery Hinges on Breakout
Given the close proximity to unprecedented levels, the market is now attentive to whether Bitcoin will break through this barrier and usher in a new chapter of price exploration. If this resistance is breached, Bitcoin's price would touch its highest monthly levels and indicate a restoration of investor confidence. Conversely, a rejection at this level could trigger a sharp retracement back toward the $96,000–$98,000 support band.
Traders should carefully watch the market in the next sessions, paying close attention to volume spikes and pattern of candlesticks in this zone. Bitcoin’s position at this crucial point could easily influence investors’ short-term mood and the direction prices take next.
