Currently, BTC is forming initial support around 105,600. A second downward test has not broken the previous low, and the trading volume is shrinking, indicating a weakening of bearish momentum. If the price can stabilize in the range of 105,800-106,000, it may trigger a rebound from oversold conditions, targeting 107,000-107,500. The 4-hour RSI shows a bottom divergence and a negative funding rate, suggesting short-term repair demand. Aggressive traders can try a small long position, with a stop loss set below 105,300.
106,200-106,500 serves as the initial resistance zone, and a breakout may accelerate the test above 107,000. If a double bottom structure forms accompanied by an increase in volume, a short-term short covering rally can be expected. However, caution is needed as the overall trend remains bearish. If the rebound cannot stabilize above 107,500 (the lower edge of the previous consolidation range), it may return to a downward channel.
The current rebound is merely a technical correction, and strict risk control is necessary. If the support at 105,300 is broken with increased volume, it will confirm the continuation of bearish momentum, with the target looking down to 104,000. Conservative traders are advised to wait for an effective breakout above 106,500 or a pullback stabilization signal before re-entering, to avoid heavy positions against the trend.
