Bitcoin broke below a major $105000 trendline causing a rise in price volatility that affects trading choices.
Price swings remain strong between $103000 and $108000 showing that traders face uncertain short-term directions.
Watching Bitcoin’s reaction at $103000 support and $108000 resistance will define its path forward this month.
Bitcoin ($BTC) continues to experience significant volatility following a breakdown below its daily support trendline. The latest 4-hour chart shows a clear breach of the upward trendline that had supported Bitcoin’s steady climb since early April 2025. This shift in price action signals heightened uncertainty for traders and investors alike as the cryptocurrency struggles to regain momentum above the $105,000 level.
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This notable breakdown has introduced increased price fluctuations and left market participants watching closely for the next key move. After peaking near $113,000 in mid-May, Bitcoin’s price retreated sharply, breaking the trendline that had supported its steady rise. The subsequent price action revealed a volatile phase characterized by sharp swings and an unsettled market environment. The question now remains: Can Bitcoin stabilize above current support and regain bullish momentum, or will volatility persist with further downside risks?
Breakdown Below Trendline Signals Shift in Market Dynamics
Bitcoin’s price had followed a well-established upward trendline since early April, rising from approximately $75,000 to over $110,000 by mid-May. This consistent climb was underpinned by a steady series of higher highs and higher lows, supported by positive market sentiment and institutional interest.
However, on May 29, 2025, Bitcoin closed decisively below this daily trendline, marking a technical breakdown that many analysts view as a critical turning point. The breach indicates weakening buying pressure and signals that sellers gained control, triggering increased price swings.
The aftermath of this breakdown has seen Bitcoin's price oscillate in a volatile range between roughly $103,000 and $107,000. Market participants remain cautious, with the 4-hour price candles showing sharp spikes and dips, reflecting heightened trader indecision. This volatility aligns with typical market reactions after a breakdown of long-held support levels.
Volatility Remains Elevated, Impacting Short-Term Price Action
The breakdown has sustained elevated volatility, causing rapid shifts in Bitcoin's price within short timeframes. Such volatility often creates challenges for traders, as stop losses may trigger prematurely and new entries require careful timing.
Recent 4-hour charts demonstrate the heightened market activity, with Bitcoin price candles exhibiting erratic movements and rapid reversals. This environment reflects uncertainty about near-term price direction and leaves room for sudden rallies or sharp declines.
The breakdown below the trendline also increases the likelihood of testing lower support zones near $100,000. Conversely, a rebound above $108,000 could signal renewed bullish strength and the potential resumption of the prior upward trajectory.
Market Participants Eye Key Levels for Next Moves
As Bitcoin navigates this turbulent period, attention centers on critical price levels that will guide future trends. Support near $103,000 remains crucial, with failure below this threshold possibly leading to deeper declines.
Resistance in the $108,000 to $110,000 zone serves as a key barrier for any meaningful recovery attempt. Clearing this area with strong volume could restore confidence and set the stage for new highs.
