Essential Level Paves the Way for Bitcoin’s Upcoming Bull Market, Says Analyst

Bitcoin’s recent stability above the $104,000 threshold could signal more than just a brief intermission; it might represent a crucial moment before reaching a new peak, as suggested by prominent market analyst Rekt Capital.

The direction of the cryptocurrency market hinges on the leading digital asset’s capability to maintain this essential level, influencing whether buyers will gain control or if sellers will regain their footing.

The $104,400 Benchmark

In a message released on June 16, Rekt Capital observed that Bitcoin has consistently tested the $104,400 mark as support for six weeks. This continued testing follows a breakout from an extended “re-accumulation range,” according to the analyst.

They reminded market participants that it took Bitcoin more than 240 days to surpass its post-halving trading range earlier this year. Ensuring weekly closes above $104,400 is crucial: “Discussions about lower price levels are premature until the $104,400 level is breached,” they explained.

Despite the prevailing negative sentiment and trader fatigue, the actual price retraction from the recent peaks has been minor, sitting at only -10%. This suggests more of a “time-based capitulation” than a steep price downturn. The analyst expressed concerns that failing to hold this level could lead to a more significant correction.

Conversely, sustained support at this level could open the path to challenge the significant resistance near $108,890, potentially entering what the analyst terms “Price Discovery Uptrend 2.”

“As long as Bitcoin maintains the $104,400 level, it is set for upward movement over time,” the analyst stated.

Though the process is gradual, it is marked by the emergence of higher lows and diamond patterns, technical indicators that frequently suggest impending upward trends.

Market Dynamics

Even amid geopolitical tensions arising from the ongoing conflict between Israel and Iran, Bitcoin’s structural support remains intact, further bolstering its bullish narrative.

Currently, Bitcoin is trading around $105,569, experiencing a 2% decline over the last day. Over the week, it has seen a drop of about 3.4%, yet it still boasts a remarkable 60.2% increase over the past year.

A tightening pattern near the cryptocurrency’s all-time high of $111,814 may indicate brewing volatility. Investor Daan Crypto Trades pointed out that a significant market movement is highly probable in June.

Although there are signals of an impending large move, on-chain data from Axel Adler Jr. shows a sustained reduction in Coin Days Destroyed (CDD) Momentum, suggesting less selling pressure from long-term holders. When combined with a consistent decline in Bitcoin held on exchanges, this situation implies a market ripe for potential supply shocks.