Bitcoin’s $106,800 Support Test to Shape BTC’s Next Direction

During the brief pause in the market, Bitcoin (BTC) has experienced a 2% decline in value over the last 24 hours. As the leading cryptocurrency by market cap, it has been fluctuating between significant resistance and support boundaries, prompting some analysts to predict impending volatility for BTC.

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Bitcoin Price Stabilizes Close to Record High

On Wednesday, Bitcoin and the wider crypto market experienced a slight retracement ahead of the release of the Federal Open Market Committee’s (FOMC) meeting minutes from May 6 and 7.

The flagship cryptocurrency fell by 2.7% from the daily opening price of $110,000, reaching a low of $107,107, indicating a cautious sentiment among investors.

Notably, Bitcoin has enjoyed a robust 15% increase over the past month, recently achieving a new all-time high (ATH) of $111,953 nearly a week ago, and recovering approximately 50% from lows recorded in April.

After hitting its new ATH, Bitcoin has primarily moved sideways, trading within the range of $106,800 to $109,700.

Despite this minor pullback, analyst Crypto Jelle believes that Bitcoin’s trajectory towards price discovery remains “intact,” highlighting that it has been consolidating above prior peak levels.

According to recent charts, the cryptocurrency is developing a symmetrical triangle pattern in lower time frames, with the upper boundary positioned between $109,000 and $110,000.

Jelle suggests that the cryptocurrency is “building pressure for the next upward movement,” predicting a breakout that could lead to an additional 30% increase.

The analyst has also pointed out a Power of 3 (Po3) formation within Bitcoin’s chart, indicating potential price targets of $140,000 to $150,000 after overcoming the new ATH resistance.

Ali Martinez noted that while BTC remains “range-bound” despite the recent price decline, he emphasized that the lower boundary of this range is critical to monitor. He cautioned that if the price drops below the $106,800 support level, it could lead to increased volatility, potentially pushing BTC to lower levels.

Could a BTC Retest Spark Volatility?

Titan of Crypto also confirmed that Bitcoin is currently at a crucial level. Based on recent analyses, BTC is “still hovering around the daily Tenkan,” a significant level to watch amid potential volatility stemming from the FOMC Minutes.

A break below this support area could lead the cryptocurrency to the next key support level around $102,700. Conversely, maintaining current levels may prepare for a renewed challenge of the upper range boundary.

Moreover, Daan Crypto Trades has observed that as Bitcoin stabilizes near its ATHs, BTC-based exchange-traded funds (ETFs) have experienced substantial inflows in recent weeks, achieving their second-best performance last week.

According to him, one of the more reliable “indicators” for assessing strength or weakness at local tops or bottoms has been ETF flows, noting that significant inflows following a major price surge, while BTC’s price does not continue to rise, often indicate a local peak.

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For traders, “it’s crucial for bulls to initiate movement swiftly, as accruing billions in inflows without corresponding price action isn’t typically favorable,” further adding that “for the level of effort required to push through an ATH, greater outcomes should be expected.”

Daan believes that if the influx of funds wanes and BTC’s price remains steady, then short-term performance is likely to persist in the same manner. However, should the price fail to stay within its current range, “a brief period of decline and fear may be necessary before a solid breakout occurs.”

At this moment, Bitcoin is priced at $107,700, reflecting a 1.6% decline over the week.