Bitcoin Encounters Major Resistance Following 10% Surge

Following a 10% increase over the past week, Bitcoin (BTC) has reached a significant resistance point, which could either propel or temporarily halt the leading cryptocurrency’s surge toward a new all-time high (ATH).

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Bitcoin Reaches a Critical Level

Bitcoin recently crossed the $100,000 threshold for the first time since February. Its remarkable weekly performance has seen BTC climbing by over 10%, hitting a three-month peak of $105,500 on Monday, which has bolstered investor optimism regarding another ATH.

On Monday, analyst Rekt Capital noted that the leading cryptocurrency has surged throughout the entire re-accumulation range, signaling the end of its downward motion and the initiation of the first price discovery correction. After reaching its range high of $104,500, Bitcoin encountered resistance at this crucial level, momentarily pausing its upward trend.

He indicated that Bitcoin has already experienced its first Price Discovery Uptrend as well as its first Price Discovery Correction. The cryptocurrency is now trying to establish its second Price Discovery Uptrend but must reclaim $104,500 as a support level to verify this transition.

As explained by the analyst, this point currently serves as resistance after it concluded the week at $104,118, just shy of the range high. He mentioned that “technically, BTC can aim for an uptrend confirmation beyond this level by daily closing above $104.5k and subsequently maintaining it as support, so this lower timeframe confirmation will be essential to monitor.”

Nonetheless, “until such confirmation is made, this resistance will persist. As is often the case with resistances, they tend to push back against the price.”

Rekt Capital noted that Bitcoin is mirroring crucial aspects of its post-halving phase within its current range, which indicates that if BTC keeps facing resistance at this level, it could experience a post-breakout retest of its lower high resistance.

Is a Dip Forthcoming Before New ATHs?

Previously, the analyst indicated that BTC is likely replicating its Q4 2024 behavior, during which the cryptocurrency bounced back from a downward deviation to achieve a new ATH.

Initially, BTC encountered rejection at its lower high resistance and dropped to the lows of the range before surging past the lower high, subsequently retesting it as support and skyrocketing to a new ATH.

To see a similar pattern repeat, BTC needs to be rejected at $99,000, maintain $93,500 as support, and breakout past the $97,000-$99,000 range before facing rejection at the $104,500 resistance, which needs to convert into support for Bitcoin to jump into its second Price Discovery Uptrend.

Significantly, BTC has closely followed this trajectory over the past week, facing resistance near $99,000 and retesting the $93,500 support before climbing above the $100,000 mark. For this trend to continue, the cryptocurrency must dip to the range of $97,000-$99,000 and maintain that level as support to facilitate a breakout to new ATHs.

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In his analysis on Monday, Rekt Capital mentioned that the lower high resistance for BTC stands at $98,500, suggesting a potential 5% decline might be forthcoming. However, he pointed out that the retest “is not a necessity,” as Bitcoin could daily close above the significant resistance, hold this level, and move towards new ATHs.

“In the event of a decrease, converting the Lower High resistance into new support could effectively validate the breach of this Lower High, turning it into fresh support and thereby solidifying BTC’s place within the $98.5k-$104.5k segment of the ReAccumulation Range,” he concluded.