Bitcoin jumped from a local low and hit $104K but stalled under a key downward red line near $105K today.
A second bottom may form near $98K as RSI sits at 54 and short-term signals show reduced buying energy.
Charts reflect the 2020 rally setup where pullbacks led to breakouts so the next move now holds high value.
Bitcoin rebounded swiftly to $104,395 after dipping earlier this week but now faces stiff diagonal resistance on short-term charts. The sharp bounce raised suspicion of a stop hunt, as highlighted by crypto analyst TommyJR, who shared an updated price model. This model also identifies possible outcomes, including a breakout or the formation of a double bottom.
Source: X
At 2:58 a.m. on June 7, TommyJR noted that Bitcoin’s movement mimics the late 2020 to early 2021 pre-pump correction pattern. The chart shows price behavior similar to previous rallies where rejection at long-term resistance zones preceded major upward moves. This scenario reappeared as Bitcoin bounced up from a local low and quickly hit a red descending resistance line.Source:
Current price action mirrors earlier setups, where bulls were temporarily exhausted before a stronger price surge occurred. This observation aligns with previous market data showing BTC’s tendency to pause before major breakouts.
Diagonal Resistance and Key Levels in Play
Bitcoin’s immediate obstacle lies along the red diagonal resistance line, which previously capped the rally around $117,500. After retracing sharply in early June, the price rebounded from support near the $100,000 level and now rests just under the key breakout zone. The proximity of $105,000, marked on the chart, represents a technical inflection point.
The resistance line intersects with declining short-term trend channels, making this level critical for near-term direction. Traders continue to watch this price closely for signs of either upward continuation or reversal. RSI data shows moderate strength at 54.51, suggesting some buying interest but not enough to signal clear breakout momentum yet.
Further down, the green box between $98,000 and $100,000 signals a possible double bottom area. This zone offers a strong cushion for bulls looking to regain control after the recent pullback. If broken, price targets below $95,000 may come into focus again.
Short-Term Patterns Mirror Historic Market Cycles
The model includes a white projection line that closely resembles Bitcoin’s historical rally during late 2020 and early 2021. That period also featured a significant correction followed by a powerful continuation rally. If current structure follows the same trajectory, Bitcoin could break past $110,000 after a temporary consolidation.
The market setup now requires confirmation, especially with lower highs still being formed under descending resistance. Traders remain cautious and are watching for a strong close above $105,000 to validate a bullish scenario. Without that, the double bottom possibility in the green zone becomes more likely.
A key signal from the previous rally was the round accumulation phase before BTC lifted off past resistance levels. This formation is being watched again, as the broader trendlines suggest buyers may soon challenge the existing downtrend with renewed momentum.
Will Bitcoin Confirm the Double Bottom or Attempt a Breakout?
Bitcoin’s technical chart now sets the stage for one of two likely paths—either a breakout above resistance or a double bottom confirmation. With price hovering near $104,000, market participants are preparing for a decisive move. The question now is whether this bounce has enough strength to overcome trendline resistance or if history will repeat with another retest of the lower range.
