Bitcoin’s recent surge above $100,000 kept the market on edge as bullish momentum attempted to establish a up-to-date liquidity zone beyond this milestone. This push has caused significant volatility over the past 24 hours, with Bitcoin price ranging from $99,701 to $106,307 during this period.

This there is intense variability allowed Bitcoin to achieve a daily close above the key confluent resistance level that restricted its price action last month. Despite this progress, Bitcoin continues to test the $106,000 upper band, and a firm rejection at this level could trigger a downturn, potentially pushing the price down to $91,000.

Bitcoin successfully closes above confluent resistance

According to technical analysis with Cryptocurrency analyst Rekt Capital, Bitcoin managed to close above a significant confluent resistance level. This was noted in a technical analysis of Bitcoin’s daily price action candles posted on social media platform X and highlights a key event in Bitcoin’s rally. The confluent resistance in question is defined by two critical elements: a horizontal resistance trendline at $101,165 and a bearish trendline that has been consistently making lower highs since Bitcoin reached its all-time high of $108,135 on December 18, 2024.

Since Bitcoin broke out of this confluence area, this has happened A total of $106,000 was raisedbut candle formations are starting to show a slowdown in dynamics. Bitcoin in particular formed a hammer candlestick and a doji candlestick on consecutive days, both of which are traditionally associated with slowing momentum or potential market indecision. This suggests that the upward momentum may be fading just as quickly, opening the possibility of a move down to retest the confluence area it just broke out of.

BTC must stay above this level

Maintaining a position above the breakout confluence area is crucial to determining Bitcoin’s next move. As Rekt Capital highlighted, a sustained rejection at $106,000 could trigger a move down to retest the confluence area, which is circled in green on the chart above.

If Bitcoin tests this zone again, two potential scenarios could develop. The first, more bullish outcome would involve a successful retest followed by a bounce into the confluence area. This behavior is typical of price action after a breakout, where a pullback reinforces up-to-date support and allows the price to recover gain momentum to move up another leg.

On the other hand, the second scenario is more bearish. If Bitcoin fails to hold above confluence support, the cryptocurrency could face increased selling pressure and trigger a deeper correction.

According to Rekt Capital’s analysis, the next significant support levels worth paying attention to are $91,070 and $87,325. A drop to these levels would represent a significant pullback and could reset market expectations in the tiny term.

Bitcoin is currently trading at $106,100.

Featured image from Unsplash, chart from Tradingview.com