Bitcoin $106,800 Support Retest To Determine BTC’s Next Move

Amid a temporary pause in the market, Bitcoin (BTC) has experienced a 2% decrease in price over the last 24 hours. The leading cryptocurrency by market capitalization has been fluctuating between crucial resistance and support levels, with some experts suggesting that BTC may see increased volatility in the near future.

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Bitcoin Price Consolidates Near All-Time High

Yesterday, Bitcoin, along with the rest of the cryptocurrency market, observed a minor retracement ahead of the release of the May 6 and 7 Meeting Minutes by the Federal Open Market Committee (FOMC).

The flagship digital asset saw a 2.7% drop from the $110,000 Daily Opening to a multi-day low of $107,107, indicating a cautious sentiment among investors.

It is worth noting that Bitcoin has surged by 15% in the past month, hitting a new all-time high (ATH) of $111,953 nearly a week ago and recovering about 50% from its lows in April.

Since achieving its new ATH, Bitcoin has been trading sideways, moving within the $106,800-$109,700 range.

Despite the minor pullback, analyst Crypto Jelle believes that Bitcoin’s trajectory towards price discovery remains “intact,” noting that the price has been consolidating above previous highs.

According to the chart, the cryptocurrency is currently forming a symmetrical triangle pattern in the lower timeframes, with the upper boundary ranging between $109,000-$110,000.

Jelle believes that the cryptocurrency is “building pressure for the next leg up,” and a breakout could propel the digital asset to another 30% surge.

Previously, the analyst highlighted a Power of 3 (Po3) formation on BTC’s chart, indicating that its price expansion targets the $140,000-$150,000 range after surpassing the new ATH resistance.

Ali Martinez stated that despite today’s price decline, Bitcoin remains “range-bound,” emphasizing that the lower range is a critical level to monitor. Martinez cautioned that a breakdown below the $106,800 support could trigger heightened volatility, potentially pushing Bitcoin’s price lower.

BTC Retest Could Spark Volatility?

Titan of Crypto also confirmed that Bitcoin is currently positioned at a crucial level. Based on the market watcher’s analysis, BTC is “still hovering around the daily Tenkan,” a level of significance during potential volatility following the FOMC Minutes release.

A breakdown from this support zone might lead the digital asset’s price towards the next key support level around $102,700. Conversely, maintaining the current levels could set the stage for a retest of the upper boundary of the range.

Meanwhile, Daan Crypto Trades noted that as Bitcoin consolidates near its ATHs, BTC-based exchange-traded funds (ETFs) have witnessed significant inflows in recent weeks, marking their second-best performance last week.

According to Daan, one of the better “indicators” in the cycle to gauge strength or weakness at local tops or bottoms has been the ETF flows. He explained that substantial inflows following a significant surge, without a corresponding continuation of the price rally, have indicated a potential local top.

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The trader stressed the importance of the bulls swiftly making a move, as significant inflows without substantial price progress may not be ideal. He added that after putting in the effort and breaking an ATH, more positive price action would be expected.

Daan suggested that if the large inflows cease and Bitcoin’s price holds steady, its short-term performance is likely to continue positively. However, a failure to maintain the current range could necessitate a period of panic selling before a breakout move occurs.

At the time of writing, Bitcoin is trading at $107,700, representing a 1.6% decrease over the weekly period.

Featured Image from Unsplash.com, Chart from TradingView.com