Bitcoin moved above $106000 after breaking its range and holding a clear higher low on the hourly chart
Traders now focus on a $109000 retest inside the ascending channel which has held structure since March.
Momentum builds as RSI levels stay strong and price trades near the channel top with few signs of weakness.
Bitcoin has formed a higher low and broken a key range, now heading toward a potential test of the $109,000 resistance level. On June 16, Bitcoin traded near $106,598 with hourly charts showing a breakout from a tight consolidation pattern. Analysts are watching for a channel retest at $109,000, which may signal continued bullish strength.
Source: X Structure Mimics Historical Patterns
The current Bitcoin chart displays a channel formation stretching back to March 2025, with consistent higher lows and capped highs. The structure appears similar to the late 2020 to early 2021 correction pattern that preceded a major rally. A blue ascending arc outlines this recovery phase, anchoring the movement from sub-$80,000 lows toward the $107,000 range.
The white overlay on the chart traces historical market behavior, suggesting the present movement may follow past uptrend patterns. Key inflection points are aligning closely, adding technical weight to the ongoing setup. A green arrow on the chart points to the current breakout from consolidation, highlighting a possible upward continuation.
A red trendline from earlier in the year and a green support line below $85,000 both show the longer-term bullish structure remains intact. As prices remain within the channel, the $109,000 mark has become the next major technical target.
Hourly RSI Confirms Upward Momentum
The relative strength index (RSI) displayed at the bottom of the chart reflects bullish momentum, currently hovering near 67 on the hourly frame. Readings above 60 often suggest increased buying pressure, and this latest trend supports the case for continued upside.
The break above the descending blue channel line, which held price in check since early June, adds to bullish confirmation. The move has not been accompanied by strong selling volume, reducing the risk of a sharp pullback.
The overlayed price path also supports the theory of a pattern breakout similar to historical cycles. Traders are closely watching whether Bitcoin can sustain its position above the $106,000 breakout level. A stable consolidation above this mark could lead to a move toward the next resistance near $109,000.
The orange upper trendline, near $115,000, marks a possible long-term breakout target. However, price action must first reclaim $109,000 and build support to challenge higher zones.
Focus Shifts to $109K Channel Test
In a June 16 update, analyst TommyJR stated that Bitcoin had received the higher low confirmation and broken through its range. He added that the market is now looking toward a channel test at $109,000 for further bullish confirmation.
The chart suggests that movement within the $106,000 to $109,000 zone will determine the next significant leg of Bitcoin's trend. Previous consolidation zones had capped the price before each breakout, making this level important.
Bitcoin has remained in this broad ascending structure for over three months. The recent breakout increases the likelihood of continued gains if buyers maintain pressure above $106,000.
