Bitcoin breaks a two-week downtrend and now eyes a bullish retest at the $106,600 support level.
A confirmed close above $106,600 may trigger bullish momentum toward the $109K–$110K resistance zone.
Liquidation data suggests high volatility ahead, with both longs and shorts vulnerable to a sharp move.
Bitcoin is showing early signs of shifting momentum as it attempts to break a two-week downtrend on the daily chart. The price structure now indicates that BTC may be turning the trendline into a support zone. Traders are watching closely for confirmation through a daily close and successful retest of the $106,600 level.
Price Action Signals Trend Reversal Structure
According to analysis prepared by Rekt Capital via X, Bitcoin is displaying early indications of breaking out of its recent downward structure. The light blue trendline that has defined the two-week correction was breached earlier today.
https://twitter.com/rektcapital/status/1931447330789839235
If the asset maintains this position and closes the day above $106,600, the move could mark the beginning of another bullish leg. This level is now seen as a key retest zone for potential trend continuation. Bitcoin has rebounded from a low of $100,500 recorded on June 5, recovering toward the weekly open near $105,500.
This recovery has led several traders to reassess their short-term outlooks. The asset also managed to close above the 10-day simple moving average, which some analysts view as an early sign that bearish pressure is weakening.
Market Metrics Suggest Potential for Volatility Shift
Data from Cas Abbe via X shows Bitcoin's liquidation clusters building on both sides of the current price. A 10% move upward could liquidate around $15.11 billion in short positions, while a 10% drop would result in $9.58 billion in long liquidations.
This setup indicates that the market is coiling and may be preparing for a large move in either direction. Additionally, negative funding rates were recorded over the weekend, suggesting increased short exposure.
As per the order book analysis, large positions have been building just above and below spot price. Traders are now looking at the $109,000–$110,000 range as the next resistance area, with short-term momentum likely driven by the reaction to $106,600.
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