Bitcoin (BTC) Tested $106K Resistance Three Times Before Dropping to $103K

Bitcoin (BTC) hit a tough resistance level after testing the top of its current trading range for the third time. Recently, Bitcoin shocked

Bitcoin (BTC) price tested a familiar resistance level over the weekend, hitting $106K for the third time before getting rejected and dropping to $103K. The move wiped out over $600 million in crypto bets as it occurred during quiet weekend trading, likely sparked by technical indicators and thin liquidity.

Bitcoin (BTC) is currently trading at $103,168 with a $2.05T market cap, showing a 0.72% decrease in the last 24 hours. Momentum seems to be weakening as both price and market cap went down. Volume also spiked to $44B—1.5x recent average—suggesting greater volatility and a potential change in trend. Finally, Fear & Greed Index is 74 (Greed), indicating that the market mood is changing.

This new price action came during a quiet period with low market liquidity, setting the stage for a large price move. With the Consumer Price Index (CPI) and other macroeconomic data still on traders’ minds, Bitcoin's recent activity unfolded during a weekend session, further reducing the usual volume of market participants.

Analyst Highlights Two Possibilities For Bitcoin

As crypto analyst Mags pointed out, the $106K level has acted as a strong barrier for Bitcoin’s price, making it difficult for the asset to break through completely on the first attempt. Especially since this latest rejection came after Bitcoin successfully returned to the familiar trading range, an occurrence that usually doesn't lead to an immediate breakout.

Despite this setback, Mags still highlighted that this setup supports a bullish outlook, presenting two contrasting scenarios that could unfold from here, both ultimately favoring upward movement.

The first possible outcome is that Bitcoin experiences a slight consolidation at a price point slightly lower than the resistance before breaking out sharply. According to Mags, this type of breakout is uncommon but very powerful, usually catching the market off guard and leading to a rapid increase in price.

If Bitcoin manages to pierce this resistance after some brief sideways movement, it could signal very strong momentum and kick off the next rally in a powerful way.

The second possibility is a short-term dip as Bitcoin moves back down toward the middle of the range, which Mags noted is around the $99,400 level. He added that this could even include a brief move below that price in a healthy correction, allowing the market to reset and prepare for another push higher.

This path might take a bit longer, but it would help build stronger support for a more sustainable move up.

Both scenarios ultimately suggest that Bitcoin still has more room to rise despite the recent rejection. As Mags noted, this price action is not bearish, but rather shows a typical pattern of testing resistance before a larger breakout.

Now, traders will be keeping an eye on whether Bitcoin pushes higher or takes a dip as it prepares for its next major move. Regardless, Mags remains optimistic about the trend.