Bitcoin Bulls Encounter Crucial Test at $106,500 Resistance – Insights Inside

A renowned digital asset analyst known as Crypto Patel has indicated that Bitcoin is currently testing a significant price resistance near the $106,500 mark. Investors in BTC may anticipate either a bullish rally or a notable pullback based on how the asset behaves at this point.

Since a brief surge over $105,000 on May 12, Bitcoin has been trading within a narrow range, exhibiting minimal price fluctuations. Nonetheless, market sentiment remains optimistic, as evidenced by nearly $2 billion in new weekly investments in US BTC spot ETFs.

Bitcoin At A Crossroads: Potential for $120k or a Drop to $75k?

In a recent X post dated May 16, Crypto Patel provided an overview of Bitcoin’s price behavior, underscoring key support and resistance points. He noted that Bitcoin’s latest increase indicates a retest of critical resistance around the $106,500 area.

This resistance zone has historically caused price rejections in December and January. Should Bitcoin bulls generate enough market traction to break through this barrier, Patel anticipates that the leading cryptocurrency will maintain its upward trend, targeting an initial price of $120,000.

Conversely, another rejection at this level could negatively impact current investors, potentially driving prices below the vital $90,000 support level, thereby testing lows around $75,000. Such a correction could reflect a decline of approximately 27.1% from the existing market price, even amid strong bullish sentiments currently in play.

Interestingly, the Relative Strength Index (RSI) reveals that Bitcoin has recently dropped out of overbought territory, aligning with predictions of a possible price correction. However, broader economic factors, such as the recent 90-day tariff pause between the US and China, alongside substantial institutional investments, enhance the likelihood of a sustained bullish trend.

Bitcoin Price Forecast

As of now, Bitcoin is trading at $103,355, reflecting a 1.62% decline over the past week. Despite this, the asset’s monthly performance indicates a 21.46% increase, suggesting that many new market participants are still in profit.

An analysis platform indicates a heightened sense of greed among investors, with the Fear & Greed Index reaching 74. Analysts from the site project that Bitcoin could reach $127,872 in the upcoming five days, followed by a potential correction bringing the price down to around $111,616.

For those considering longer-term investments, analysts forecast Bitcoin could reach a valuation of $155,583 in three months and $148,167 in six months.