Bitcoin Flashes Warning Signs as Uptrend Slows Near Key Resistance
In our latest daily technical analysis, we examine key support and resistance levels, evaluate the bullish-bearish bias in indicators like the MACD and RSI, and explore possible trading strategies for both long and short positions.
Bitcoin (BTCUSDT) has continued to hover near its recent highs after a strong rally from the sub-$97,000 range. Price action over the last few sessions has largely respected the uptrend, but the momentum that fueled the climb is showing early signs of fatigue as the leading cryptocurrency tests a crucial resistance band around $106,000.
Resistance Looms Large at $106K
The psychological and technical ceiling between $106,000 and $106,150 has yet to be breached, despite BTC’s multiple attempts. This area marks the next significant resistance level, and a clean breakout above it could open the door for rapid continuation higher. However, Bitcoin is struggling to gather enough bullish volume, hinting that buyers may be waiting for a deeper dip or more confirmation before re-entering.
Daily chart for WBTC/USD (Source: GeckoTerminal)
On the downside, Bitcoin maintains solid support around $96,593, with additional backstops at $95,778 and $95,671. These levels have seen repeated defense during past dips and are likely to attract bids again if selling pressure increases. Any breakdown below these zones could trigger a larger correction toward the lower EMA levels.
Bitcoin Momentum Indicators Remain Cautiously Bullish
Momentum is still leaning bullish, though with reduced intensity. The MACD remains in positive territory with a widening gap above its signal line, suggesting the uptrend is technically intact. However, the histogram is beginning to flatten slightly, which may reflect a slowing pace of bullish momentum.
Similarly, the RSI has cooled from overbought conditions but is still elevated, hovering in a range that supports continued upside but also warns of potential exhaustion. If momentum continues to ease, we may see Bitcoin enter a period of sideways consolidation before making a decisive move.
For bullish traders, a break and hold above the $106,150 region could serve as an entry trigger for long positions, especially if supported by increasing volume and a fresh MACD crossover. In such a case, stop losses could be placed just below $103,500, targeting the next leg higher potentially around $110,000.
Conversely, bears may consider short opportunities if BTC fails multiple times to breach $106,000 and begins to slip below $103,000. A rejection from resistance combined with fading MACD and RSI strength would validate the short bias, with downside targets near $96,000–$95,500.
Conclusion
While Bitcoin’s overall trend remains bullish, the latest data suggests that momentum may be stalling as price nears a major resistance zone. Traders should watch for either a breakout above $106K or a pullback to key support levels to gauge the next directional move.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
