The 8th time since 2025! Bitcoin faces resistance at $106,000, market sentiment is complex
Bitcoin has been fiercely contested around the $106,000 mark recently. On Tuesday, it briefly reached $107,000 but quickly fell back to around $105,000, marking the 8th failure to effectively break through since 2025.
Market analysts point out that this critical level is becoming an important psychological barrier for bulls, with significant selling pressure triggered each time it is approached.
At the same time, the current market performance is influenced by a mix of bullish and bearish factors:
On one hand, the advancement of the U.S. "GENIUS Stablecoin Act" and the continuous influx of funds into Bitcoin spot ETFs provide support. For instance, BlackRock's IBIT holds over 630,000 Bitcoins, accounting for 3% of the total Bitcoin supply, and its structural buying has propelled Bitcoin's rise by 42% so far this year.
On the other hand, Moody's downgraded the U.S. sovereign rating to Aa1 last weekend. Although this temporarily boosted Bitcoin's buying demand, high real yields continue to suppress risk appetite.
Additionally, global regulatory policies regarding Bitcoin and other cryptocurrencies remain unclear, and the complex geopolitical situation is also causing disturbances in market sentiment. Moreover, Bitcoin is facing key resistance levels technically, making technical pullback pressure significant.
According to analysts, Bitcoin needs to close above $107,500 on a daily basis to confirm a breakout. They expect the first support level to be around $102,750, which coincides with the intersection of the 50-day moving average and Monday's opening price.
Currently, BTC volatility is near historical lows, but the expiration of a large number of options on May 30 (concentrated around the $110,000-$115,000 strike price) could trigger significant price fluctuations. The upcoming release of FOMC meeting minutes and legislative progress will also serve as short-term catalysts. Furthermore, JPMorgan has recently opened Bitcoin investments to its banking clients, marking a rapid move by traditional institutions.
In summary, Bitcoin is currently at a critical decision point. Whether it can convert the $106,000 resistance into support in the coming days and subsequently challenge the historical high from January is also the focus of widespread market attention.
Do you think Bitcoin can break through the key resistance level of $106,000 in the next few days? What unique insights do you have regarding Bitcoin's upcoming market situation? Feel free to share!
