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Popular digital asset analyst with X handle Crypto Patel has stated that Bitcoin is currently retesting a crucial price resistance at the $106,500 price region. Based on the asset’s performance at this level, BTC investors could expect a bullish price continuation or a significant price pullback.
After a brief rise above $105,000 on May 12, Bitcoin has remained range-bound, showing no significant price movement since then. However, bullish sentiments remain high as demonstrated by US BTC spot ETFs scooping another almost $2 billion in net weekly investments. Related Reading Is Bitcoin Bull Run Back? Daily RSI Shows Only Mild Bullish Momentum 1 day ago Bitcoin At A Crossroads: Can Bulls Push To $120k — Or Does A Fall To $75k Await?
In an X post on May 16, Crypto Patel shares a simple technical analysis on Bitcoin price movement, highlighting the present major support and resistance levels. According to the analyst, Bitcoin’s most recent price gain shows the asset is retesting a critical resistance around the $106,500 price region. Notably, this resistance band has proved effective in inducing price rejections in December and January. If Bitcoin bulls can command sufficient market demand to subdue this price barrier, Crypto Patel projects the premier cryptocurrency will sustain its current uptrend with an initial price target set at $120,000. Source: @CryptoPatel on X
On the other hand, another price rejection could harm current investors’ expectations, as such negative development would force prices below the crucial $90,000 support zone to trade as low as the current market bottom at $75,000. This projected correction hints at a potential 27.1% decline from the present market price despite currently robust bullish sentiments.
Interestingly, the Relative Strength Index (RSI) shows that Bitcoin has recently dipped from the overbought territory, thus supporting predictions of an impending price correction. However, macroeconomic developments such as the 90-day tariff truce between the US and China, and strong levels of institutional investment, boost the potential of a bullish trend continuation. Related Reading Ethereum Headed For Crucial Encounter At $4,000 – Here’s Why 1 day ago Bitcoin Price Prediction
At press time, Bitcoin is valued at $103,355 following a 1.62% decline in the last week. However, the asset’s monthly performance reflects a 21.46% gain, signalling most new market entrants are still in profit.
According to the prediction site, CoinCodex, investors are showing a high level of greed as indicated by the Fear & Greed Index at 74. Coincodex analysts are predicting Bitcoin to reach $127,872 in the next five days, followed by a price correction that will return prices to around $111,616.
For long-term investment, the analyst projects Bitcoin to hit a valuation of $155,583 in three months and $148,167 in six months. BTC trading at $103,355 on the daily chart | Source: BTCUSDT chart on Tradingview.com Featured image from Pexels, chart from Tradingview