Bitcoin (BTC) Retests $106500 Resistance — Crypto Analyst Expects a Bullish Price Continuation or Significant Pullback

Popular digital asset analyst with X handle Crypto Patel has stated that Bitcoin is currently retesting a crucial price resistance at the $106,500 price region.

Popular digital asset analyst and X handle Crypto Patel has stated that Bitcoin is currently retesting a crucial price resistance at the $106,500 price region. According to the analyst, the asset’s performance at this level will decide whether BTC continues its strong run towards new all-time highs of $120,000 or faces a deep correction towards the $75,000 price region.

After a brief rise above the $105,000 price point on May 12, Bitcoin has remained range-bound, with no significant price movement in the past 24 hours. However, bullish sentiments are still high, evidenced by US BTC spot ETFs scooping another almost $2 billion in net weekly investments.

Is Bitcoin Bull Run Back? Daily RSI Shows Only Mild Bullish Momentum

Bitcoin At A Crossroads: Can Bulls Push To $120k — Or Does A Fall To $75k Await?

In an X post on May 16, Crypto Patel shares a simple technical analysis on Bitcoin price movement, highlighting the present major support and resistance levels. As the analyst notes, Bitcoin’s most recent price gain shows the asset is retesting a critical resistance around the $106,500 price region.

This resistance band has proved effective in inducing price rejections in December and January. If Bitcoin bulls can command sufficient market demand to subdue this price barrier, Crypto Patel projects the premier cryptocurrency will sustain its current uptrend with an initial price target set at $120,000.

Alternatively, another price rejection at this stage could harm current investors’ expectations, as such negative development would force prices below the crucial $90,000 support zone to trade as low as the current market bottom at $75,000. This projected correction hints at a potential 27.1% decline from the present market price despite currently robust bullish sentiments.

Interestingly, the Relative Strength Index (RSI) shows that Bitcoin has recently dipped from the overbought territory, thus supporting predictions of an impending price correction. However, macroeconomic developments such as the 90-day tariff truce between the US and China, and strong levels of institutional investment, boost the potential of a bullish trend continuation.

Ethereum Headed For Crucial Encounter At $4,000 – Here’s Why

Bitcoin Price Prediction

At press time, Bitcoin is trading at $103,140 after decreasing by 1.62% in the past week. However, the asset has gained 21.46% over the past month.

According to the prediction site, CoinCodex, investors are showing a high level of greed as indicated by the Fear & Greed Index at 74. Coincodex analysts are predicting Bitcoin to reach $127,872 in the next five days, followed by a price correction that will return prices to around $111,616.

For long-term investment, the analyst projects Bitcoin to hit a valuation of $155,583 in three months and $148,167 in six months.