Bitcoin falls below $108K amid global tension, testing a key support near $107,601.
Resistance at $111,990 continues to cap price recovery efforts.
Market eyes higher low formation as potential springboard for next rally.
Bitcoin fell below the $108,000 mark early in the current week after reports of global war apparently instilled market fear once more. The leading cryptocurrency fell 1.5% in the past 24 hours to decrease to around $107,939 at press time. Investors and observers are now eagerly observing if the market can establish a higher low to recover the momentum.
Bitcoin Pulls Back After Recent Surge
After recovering from a strong bounce near the $100,400 level on June 6, Bitcoin had managed to reclaim lost ground, climbing back toward the $111,990 resistance zone. However, price action stalled around this critical level, where a double-top pattern formed in late May. Technical indicators show rejection at that resistance, leading to the latest downturn.
The current retracement has brought Bitcoin close to a short-term support level near $107,601. If this zone holds, analysts suggest that a higher low could form, potentially setting the stage for another rally attempt toward the $110,269 resistance level and beyond.
Key Support and Resistance Levels Shaping Market Outlook
The chart highlights several key levels of interest. The $100,400 mark, which acted as a local bottom last week, remains a major psychological and technical support. On the flip side, the $111,990 resistance level has proven difficult to break, forming a lid for short-term price discovery.
https://twitter.com/CryptoJelleNL/status/1933033383002845265
Higher up, the 1.618 Fibonacci extension level is at about $119,152, which is a possible long-term target in the event bullish drive gains pace again. Traders will probably wait for a definitive higher low to be established and acted on by volume and structure, however.
Geopolitical Concerns Weigh on Sentiment
The pullback was accompanied by unsubstantiated rumors of geopolitical turmoil, which have a tendency to make investors err on the side of caution or remain idle. Bitcoin has in the past responded like a risk-on asset, suffering from global uncertainty. Even though the details surrounding the recent rumors are unclear, the timing of the sell-off suggests that something else is driving sentiment and not technicals.
Near-Term Outlook Hinges on Support Reaction
Going forward, much depends on how Bitcoin behaves around the $107,601 support zone. A sustained bounce from this area would increase the probability of a new upward leg. Conversely, a breakdown below this level could open the door for a retest of the $100,400 base.
While the long-term trend for Bitcoin remains intact above the key psychological levels, short-term fluctuations are expected to persist. For now, traders are watching closely to see whether Bitcoin can stabilize and attempt another push toward its previous highs.
