Bitcoin has hit a tough resistance level after testing the top of its current trading range for the third time. Recently, Bitcoin shocked traders as it shot up to $106K, then quickly tumbled back to $103K, all in a matter of hours. This sudden spike and drop wiped out over $600 million in crypto bets, catching both buyers and sellers by surprise.
The move came during a quiet weekend, likely triggered by automated trading and thin liquidity. With inflation worries and economic uncertainty in the air, Bitcoin is still hovering near its highs, but the road ahead looks bumpy.
Crypto analyst Mags explains that the $106K level has become a key barrier for Bitcoin’s price, making it hard for the asset to break higher on the first try. This latest rejection came after Bitcoin reclaimed the range, a retest that often doesn’t lead to an immediate breakout.
Although Bitcoin was rejected again, Mags believes this setup still supports a bullish outlook. He outlines two possible scenarios that could unfold from here, both of which favor upward movement.
The first possible outcome is that Bitcoin consolidates slightly below the resistance before breaking out strongly. Mags says this kind of breakout is rare but very powerful. It usually comes when the market catches off guard and leads to a sudden rise in price. If Bitcoin breaks this resistance after some brief sideways movement, it could signal strong momentum and kick off the next rally.
The second possibility is a short-term dip. Bitcoin could move back down toward the middle of the range, which sits around the $99,400 level. Mags says this could include a brief move below that price as part of a healthy correction. Such a retest would give the market time to reset before pushing higher again. This path may take longer, but it helps build stronger support for a more sustainable move up.
Despite the recent rejection, both of these scenarios suggest that Bitcoin still has more room to grow. Mags emphasizes that the current price action is not bearish. Instead, it shows a typical pattern of resistance testing before a larger breakout.
Traders are now watching closely to see whether Bitcoin will push higher soon or take a dip before making its next move. Either way, Mags remains optimistic about the trend.
Bitcoin dropped after hitting $106K resistance, with thin weekend liquidity and sudden sell-offs triggering sharp price swings.
Analysts see two paths: brief consolidation under $106K before a breakout, or a pullback then renewed rally.
A healthy pullback might test mid-range support near $99,400 before resuming its next upward move.
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