BTC needs to move past $104,896 to prove that the uptrend is stronger.
The support at $103,398 continues to hold which is likely to maintain the low market movement for now.
Moving above the current state could open the path to the $110K psychological mark.
Bitcoin's latest price movement has placed the leading cryptocurrency at a crossroads, as it hangs in precarious balance just shy of a pivotal resistance level. On the 1st of June, BTC was trading at $104,334, up a small 0.6% in the past 24 hours.
While this increase is a sign of some bullishness, analysts state that a powerful reversal will depend on Bitcoin's ability to overcome and stay above the resistance level that currently is in the order of $104,896.
Recent Price Action Indicates Temporary Slowdown
Following a dramatic rise from the lows seen in March, Bitcoin has continued going up and reached a new high in May. The rally was triggered by the price clearly moving above a gradually descending trendline that had blocked significant upward movements in the past. As BTC broke out of the consolidation zone, it swiftly moved up to near $104K–$105K.
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Recently, the momentum trading style appears to be showing less strength. The price of Bitcoin has come down from its highest point, indicating uncertainty ahead of the key resistance. According to experts, the level has relevance from the past as it has both helped support rallies and stopped price increases. With the short-term pause, buyers are now testing if the market’s rally has more energy ahead.
Support Level Holds, but Consolidation Looms
The nearest support level lies at $103,398. So far, this level has held firm, preventing deeper retracement. Market participants will be closely monitoring this zone for signs of accumulation or further selling pressure. If Bitcoin continues to trade sideways between $103K and $105K, it could indicate a consolidation phase before the next directional move.
If Bitcoin breaks through the resistance, the pattern can result in further upward movement. A bullish breakout might allow the price to reach the psychological level of $110K as long as the volume increases and buying pressure continues.
Technical Factors Point to Cautious Optimism
If the support holds, chart patterns suggest the trend is still moving upwards. The appearance of higher lows along with breaking the downward trendline points to buyers gaining control at this stage. Yet, if Bitcoin cannot climb above $104,896, bullish energy might cool and the market might become more unpredictable.
Bitcoin has been holding steady between two vital points. Many professionals in the market believe that what happens next could be crucial for the near future. The next few weeks’ market trends and larger economic patterns are likely to shape if stocks continue rising or drop again.
