Assessment of Bitcoin Value: Indications Suggest a Slow Down in BTC Following its Recent Surge

After reaching a critical resistance level close to $106K, Bitcoin is looking a bit drained, and momentum seems to be slowing down. This comes after a mid-April rally which pushed the prices into an overbought zone. The overall trend is still bullish, but short-term stabilization or even a slight drawback is expected considering the current technical environment and on-chain activities.

Bitcoin managed to clear several significant resistance zones and approach a key supply zone around $106K after a surge from the $90K breakout level. However, the recent impulsive move might need a pause, particularly if buyers are unable to break through the $109K area.

On-chain data also supports the cooling sentiment with Bitcoin exchange reserves continuing to decline, reflecting low selling pressure from long-term holders which could be a positive sign for the future.