Bitcoin (BTC) Price Stabilizes Above $100K00 as Market Participants Watch for Breakout or Reversal

Bitcoin's price, after reclaiming the $100,000 milestone last week, is now stabilizing above that crucial psychological level. Despite

Bitcoin’s price has been stabilizing above the $100,000 milestone after reclaiming it last week. However, despite maintaining its six-figure status and outperforming other major cryptocurrencies in recent months, market participants are closely watching for signs of either a breakout or a reversal in the days ahead.

Bitcoin Might Be Gearing Up For Another Dip

Technical analysts are raising concerns based on Bitcoin’s six-month chart, which is now showing a familiar pattern that could herald a potential dip for the flagship cryptocurrency.

According to the Citizen Watch Report, the current formation in the six-month chart of Bitcoin closely mirrors one that occurred previously, leading to a substantial fall in the cryptocurrency.

As seen in the past pattern, Bitcoin faced resistance at the $110,000 level before slipping to around $90,000, forming a familiar trend that could repeat itself in the coming days or weeks.

Currently, Bitcoin is showing signs of slowing momentum after failing to break through the $105,000 resistance level, suggesting that a retracement might be in the works.

Bitcoin price is currently trading at $103,079. A return to the $84,500 level would mark a significant drop of 18%.

However, it's important to note that such projections are based on recognizing historical trends and patterns, which might not necessarily repeat themselves in the same way.

The crypto market is known for its volatility, and traders are advised to apply proper risk management strategies and technical analysis to guide their trading decisions in the days ahead.

Earlier this year, Bitcoin experienced a spectacular price correction as it fell from a high of $109,000 in January to a low point of just below $75,000 in mid-April.

However, from that local low point of $74,600, BTC staged an impressive comeback, notching a 39.1% gain in a month as it reached a new local high of $105,800 on May 16.

Potential Breakout Above $105,000 Target

In a post on May 16, Trader Alan pointed out a compelling trend using technical analysis. He said that rallies in Bitcoin in recent times have a pattern of a $10,000 rise, followed by 7–10 days of consolidation in a sideways fashion before a renewed rise. This pattern persisted in multiple price cycles in recent history.

Bitcoin continued in this pattern from $75,000 to $85,000, then to $95,000, and $105,000. Following such a pattern, a breakout above $105,000 could drive BTC to the $115,000 level. Should it happen, it would be a 10.57% increase and a sign of continued bullish dominance in the cryptocurrency space.

Such a steady climb marks the sustainable uptrends. Periodic consolidations serve as breathers, precluding overextension. These cool-off phases often turn into new support levels, lending better support to the bull market. Traders who pay close attention to these patterns might find tactical entries during these cooling-off phases.