The price of Bitcoin is witnessing a critical moment after its recent rise above the $106,000 level, as traders wonder whether this momentum will lead the price to new record levels, or if the market is facing a potential correction.
According to an analysis provided by expert "Ali Martinez", the currency has reached a major resistance area near $107,000, which is the same area that formed a reversal point in previous cycles, notably in December and January.
He confirms that a daily close above this level would be a strong technical signal for the continuation of the upward trend.
However, "Martinez" points out signals of slowing momentum, especially with the Relative Strength Index (RSI) entering the overbought zone since May 15, which may indicate a short-term correction.
He adds that profit-taking has actually begun, as investors have sold more than 30,000 Bitcoins since May 13, which reinforces selling pressure and increases the likelihood of a short-term decline.
If the correction continues, the most significant support area lies between $95,850 and $98,730, where more than a million Bitcoins have accumulated in this range, making it a pivotal demand level.
If it is broken, we may witness a deeper correction.
If it holds, prices may stabilize and rise again toward the next resistance at $116,900.
As of the time of writing this article, the price of Bitcoin has stabilized around the $103,000 level, in a horizontal movement reflecting the market's hesitation between resuming the rise or entering a temporary corrective wave.
