As per the latest reports from Cointelegraph, Bitcoin is encountering heavy resistance around the $106,000–$108,000 mark, which could potentially lead to a descent towards $100,000. Weekly RSI divergence suggests a more profound correction might be on the horizon. Furthermore, the rise in NUPL indicates an uptick in profit-taking, reminiscent of previous pre-correction phases.
Bitcoin (BTC) has been trading within a confined $500 range since reaching its record-breaking high of $112,000 on May 22. The stagnated upward momentum for more than three weeks has raised queries regarding the power of the ongoing rally. Is a fall towards $100,000 by the end of June possible?
Bitcoin seems to be courting downside volatility after its failure to maintain above the crucial $106,000 resistance level—an area highlighted by market analyst Michaël van de Poppe as vital for continued upward momentum. His chart illustrates that BTC’s most recent rally attempt was almost instantly rejected after testing the $106,000 resistance, setting off a chain of long-side liquidations and driving the price back to the $104,000–$105,000 region. This unsuccessful breakout mirrors the price pattern from earlier this month when a similar rejection resulted in a steep decline towards $100,000.
If BTC cannot maintain the $105,000 level again, it could revisit the $100,000 liquidity pool by June’s end, posing what Van de Poppe perceives as a buying opportunity, especially if the market intends to eliminate leveraged longs once more.
Adding to the short-term bearish bias, Bitcoin’s weekly chart is indicating a classic bearish divergence between price and momentum. While BTCUSD has been forming higher highs over the past months, the relative strength index (RSI) has been showing lower highs, hinting at diminishing bullish momentum. This kind of divergence often signals trend reversals or significant pullbacks, as it did before the 2021 and mid-2019 market peaks.
However, despite the bearish outlook, at least 30 indicators predict a Bitcoin bull market peak at $230,000. Some industry experts even foresee that the BTC price will exceed $150,000 by the year’s end.
Please note, this article doesn’t provide investment advice or recommendations. Each investment and trading move comes with risk, and readers are advised to do their own research before making a decision.
