Bitcoin $106,800 Support Retest To Determine Next Move – Breakout Or Breakdown Ahead?

Rubmar Garcia

1 month ago

3 mins read

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Amid the market’s momentary pause, Bitcoin (BTC) has seen a 2% price drop in the past 24 hours. The largest cryptocurrency by market capitalization has been hovering between key resistance and support levels, with some analysts suggesting that volatility could be in BTC’s short-term future.

Bitcoin Price Consolidates Near ATH

On Wednesday, Bitcoin, alongside the rest of the crypto market, saw a small retrace ahead of the Federal Open Market Committee (FOMC) release of the May 6 and 7 Meeting Minutes.

The flagship cryptocurrency dropped 2.7% from the $110,000 Daily Opening to a multi-day low of $107,107, suggesting a cautious approach from investors.

Notably, Bitcoin has seen a significant 15% rally over the past month, hitting a new all-time high (ATH) of $111,953 nearly a week ago, and recovering around 50% from April lows.

Since reaching its new ATH, Bitcoin has moved sideways, trading between the $106,800-$109,700 levels.

Despite the small retracement, analyst Crypto Jelle considers that Bitcoin’s trend into price discovery remains “intact,” pointing out that price has been consolidating above the previous highs.

Per the chart, the cryptocurrency is currently forming a symmetrical triangle pattern in the lower timeframes, with the upper boundary sitting between the $109,00-$110,000 mark.

To Jelle, the cryptocurrency is “building pressure for the next leg higher,” with a breakout propelling the cryptocurrency to another 30% rally.

The analyst previously highlighted a Power of 3 (Po3) formation in BTC’s chart, suggesting that its price expansion targets the $140,000-$150,000 level after reclaiming the new ATH resistance.

Ali Martinez stated that BTC remains “range-bound” despite today’s price drop, but added that the range’s low is the key level to watch. He warned that a breakdown below the $106,800 support could trigger increased volatility, which might send BTC’s price to lower levels.

BTC Retest To Trigger Volatility?

Titan of Crypto also affirmed that Bitcoin currently sits at a key level. According to the market watcher’s analysis, BTC is “still hovering around the daily Tenkan,” which is the level to watch during the potential volatility from the FOMC Minutes.

A breakdown from this support zone could send the cryptocurrency’s price to the next key support at around the $102,700 mark. On the contrary, holding the current levels could set the stage for a new retest of the range’s upper boundary.

Meanwhile, Daan Crypto Trades noted that as Bitcoin consolidates near ATHs, BTC-based exchange-traded funds (ETFs) have seen significant inflows over the past few weeks, recording their second-best performance last week.

As he explained, one of the cycle’s better “indicators” to determine strength or weakness at local tops or bottoms has been the ETF flows, detailing that, generally, big inflows after a big run, while BTC’s price doesn’t continue its rally, have suggested a local top.

To the trader, “it is important for the bulls to get that move going quickly because getting billions of inflows without proper price progress isn’t generally the best,” adding that “for the effort that’s put in and an ATH break, you’d want to see more.”

Daan considers that if the massive inflows stop and BTC’s price holds, then its short-term performance will likely continue. However, if price doesn’t hold its current range, “we might need to see a bit of a flush & panic first before the proper breakout move.”

As of this writing, Bitcoin trades at $107,700, a 1.6% decrease in the weekly chart.

bitcoin, btc, btcusdt — Bitcoin’s performance in the one-week chart. Source: BTCUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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