Bitcoin has returned to the spotlight as it approaches a critical decision point. After bouncing from the $102.7K level, where it absorbed liquidity, it is now experiencing a noticeable rise, showing signs of renewed momentum. However, the situation remains unclear. The price is now nearing a strong resistance area that could either trigger a breakout or spark another decline.
Prominent analyst Crypto Patel pointed out on X that the real test lies between $107.2K and $108.9K. This area, known as the bearish demand block, is where the price of Bitcoin faced its last major rejection and sharply reversed.
However, if Bitcoin manages to break through this area, it could pave the way for new historical highs. If the price faces resistance again, there is a possibility it could retreat to $102K, or even drop below the $100K level.
Bitcoin resistance areas define market sentiment.
On the Bitcoin price chart shared by Crypto Patel, the level of $106.1K is indicated as the next initial resistance level. This area represents the first challenge for buyers after bouncing from the liquidity level of $102.7K. The price is currently trading around $105.8K, heading towards an increase after forming a local low.
After this level, the Bitcoin chart sets the range of $107.2K - $108.9K as a bearish order block. This area has previously triggered significant selling pressure, leading to a sharp decline towards the level of $102.7K. Traders are closely monitoring this area, as a breakout could change the medium-term trend, while a rejection might reinforce the current bearish trend.
Source: X/CryptoPatel
The increase in Bitcoin liquidity indicates temporary support.
The previous price movement shows that Bitcoin swept liquidity around the $102.7K level. This movement likely activated stop-loss orders and attracted pending buy orders. Since then, the price has steadily risen, indicating a return of interest in short-term upside.
This rush for liquidity aligns with the prevailing market behavior, where the price drops below support levels before reversing upward. The successful defense of the $102.7K level has established it as a short-term support level. However, breaking below this point could lead to a deeper correction.
Read also: DOGE price continues to decline and this chart indicates that it is not over yet.
Moreover, trading volume remains a key factor as the price of Bitcoin approaches the resistance level. Any strong rise above the $106.1K level and into the order block will require significant trading volume. Without that, the likelihood of rejecting the demand again remains.
From a structural perspective, Bitcoin has begun forming higher lows after a liquidity wave. However, the long-term trend remains bearish unless the price can regain stability above the range of $107.2K - $108.9K.
Furthermore, as the price of Bitcoin approaches the resistance level, market participants are preparing for a directional breakout. Crypto Patel's tweet simplifies the possibilities: moving above the key resistance zone could pave the way for new record levels, while rejection might lead to a retest of lower levels.
With no confirmation of any breakout yet, traders remain cautious. Short-term strength is evident, but broader confirmation requires decisive movement beyond existing resistance areas. The outcome at current levels is likely to shape Bitcoin's path in the near term.
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