Bitcoin (BTC) Price Prediction: Will BTC Retest the $100,000 Zone?

Bitcoin's price action in the past 24 hours has seen it slowly retracing from the $104,000 zone it started the week at.

Bitcoin’s price action in the past 24 hours has seen it slowly retracing from the $104,000 zone it started the week at. This range has become particularly significant as Bitcoin continues to flirt with levels last seen during its recent push toward new all-time highs.

Bitcoin’s price movements over the past two days have tightened, and the candlestick behavior on the weekly chart has led to a doji formation on the weekly candlestick timeframe, an indicator of indecision.

Interestingly, a technical analysis from crypto analyst Tony “The Bull” Severino has highlighted critical levels to watch that will determine whether the Bitcoin price is turning bearish or still bullish.

Mixed Signals: Why The Current Resistance Zone Is Critical

Crypto analyst Tony “The Bull” Severino shared a chart and in-depth breakdown on the social media platform X, highlighting horizontal support and resistance levels as the most important technical indicators in his view.

As shown on his Bitcoin weekly chart, the leading cryptocurrency is now pressing against a well-defined resistance zone just below its all-time high, which is highlighted in red. The close proximity of this level to the all-time high could make it act like a ceiling, rendering it a crucial area to watch for either a breakout or a reversal.

Tony elaborates on three possible interpretations for the current market structure around the $108,000 resistance level. The bullish case relies on Bitcoin consolidating below resistance, a pattern that is usually followed by continuation upwards. The neutral case is that Bitcoin could be forming a broad trading range, in which case it makes sense to short the market at resistance while buying near support. Finally, on the bearish side, the formation of a doji candlestick at this key level might be signaling a loss of momentum and an early indication of a price reversal.

His trading strategy reflects this uncertainty. He has entered short positions within the red resistance zone, placing his stop loss just above the all-time high. At the same time, he has set a stop buy order in the green breakout zone above the all-time high, prepared to switch long should the Bitcoin price break through the resistance convincingly.

Conditions For A Bullish Breakout Are Not Yet Fulfilled

Although Tony noted that the broader investment market, including altcoins and the stock market, looks strong, he cautioned that this does not guarantee a bullish breakout for Bitcoin.

For confirmation, a bullish breakout must be preceded by aligning various technical indicators. These include a breakout with substantial trading volume, an RSI reading above 70 on the weekly chart, and a weekly close above the upper Bollinger Band.

At the moment, however, the Bitcoin CME Futures chart has failed to move past 70 on the daily RSI twice, and trading volume is in decline. According to CoinMarketCap, the trading volume of Bitcoin is $44.33 billion in the past 24 hours, a 11.40% reduction from the previous 24 hours. These are early warning signs that a breakout attempt may lack the strength needed for sustainability.

Nonetheless, the conditions are still very mixed and starting to lean more bullish than bearish.

At the time of writing, Bitcoin is trading at $102,352, down by 1.31% in the past 24 hours.