Bitcoin (BTC) is currently in a crucial phase as it attempts to reclaim the $106,800 level as support, which could potentially lead to a surge in price towards its local range high. The performance of Bitcoin this week is seen as pivotal, as it could set the tone for the rest of the month.
After experiencing a dip below the $106,800 level last week, Bitcoin has been making efforts to regain this important area as a support level. This level had previously acted as a key support for BTC following its rally to a new all-time high, with the price fluctuating between $106,800 and $109,700 before the market retracement.
Following an 8% drop from its recent high of $111,980 during last week’s pullback, Bitcoin hit a 10-day low near the $102,000 support over the weekend. However, the cryptocurrency has managed to recover the $105,000 range and has surged above the $106,500 mark, although it faced rejection from the crucial horizontal level on Tuesday.
Despite recent fluctuations, Bitcoin achieved its highest monthly close in history by ending May at $104,591 and is currently trading within its local range of $103,000 to $110,000. Analyst Crypto Jelle pointed out that as Bitcoin aims to reclaim the $105,000-$106,000 area, the 1.618 Fibonacci level indicates a potential target around the $130,000 mark.
Furthermore, Crypto Jelle highlighted Bitcoin’s performance in this cycle, drawing parallels to its Q4 2024 rally. The cryptocurrency recently broke out of its early 2025 downtrend line, indicating a trend breakout followed by a period of consolidation before a surge to new highs. The Power of 3 (Po3) setup for Bitcoin is still in play, with a target range of $140,000-$150,000 during the price expansion phase of the formation.
According to market watcher Daan Crypto Trades, the upcoming week and month for Bitcoin are expected to be dynamic, as a significant number of positions have been built up on both sides during the recent sideways movement. This accumulation suggests that there will be ample momentum once the price starts trending and breaks out of its current consolidation phase.
Daan Crypto Trades also noted that historically, Bitcoin tends to establish its monthly high or low in the first week of the month, followed by a reversal in the opposite direction and a trend continuation for the remainder of the month. If Bitcoin fails to hold its current levels, a potential drop below $100,000 near the $98,000 support zone could be expected before a rebound. Conversely, a substantial price increase this week may lead to a retest of the range lows in the coming weeks.
As of the latest update, Bitcoin is trading at $105,889, reflecting a 1% increase in the daily timeframe. The cryptocurrency market remains dynamic and volatile, with Bitcoin’s performance in the coming days crucial for determining its direction in the near future.
The featured image is sourced from Unsplash.com, and the chart is from TradingView.com. Stay tuned for more updates on Bitcoin’s price movements and market analysis.