Bitcoin’s Weekend Rally Faces Critical Resistance at $108,900

Bitcoin’s recent price surge over the weekend has brought it into a crucial high-timeframe resistance zone, setting the stage for a pivotal moment in the market. The $108,900 level has emerged as a key point of confluence, where the coming sessions will determine whether Bitcoin continues its upward trajectory or faces a temporary pullback. The market’s response at this level will play a significant role in shaping the near-term outlook for the cryptocurrency.

Bitcoin’s Current Momentum

Bitcoin has shown strong bullish momentum as it entered the week. However, the current price action is unfolding within a significant resistance zone, which has historically acted as a barrier to further gains. If buyers manage to push through this level with substantial volume and conviction, the potential for a breakout to new all-time highs increases. Conversely, failure to breach this resistance could result in a retracement, targeting key liquidity zones below.

Key Technical Levels to Watch

Resistance at $108,900:

  • This level aligns with the value area high, a prior swing high, the 0.618 Fibonacci retracement, and a major high-timeframe resistance.

Support Cluster at Weekend Lows:

  • The point of control, the 0.618 Fibonacci retracement, and the value area low converge near the weekend’s base, forming a strong liquidity zone.

Potential Liquidity Sweep:

  • Bitcoin often targets weekend lows before making significant directional moves, especially when consolidating near resistance zones.

Analyzing Bitcoin’s Price Action

On the 4-hour chart, Bitcoin is trading within a critical resistance region defined by several technical factors, including the value area high, macro swing high, 0.618 Fibonacci retracement, and a high-timeframe horizontal level around $108,900. Historically, this zone has served as a strong barrier, making it a likely area for short-term price consolidation or distribution.

The price action in this region will be crucial for determining Bitcoin’s next move:

  • Breakout Scenario: A decisive close above $108,900, particularly on higher timeframes like the 4-hour or daily chart, would indicate strength and pave the way for a potential rally toward new all-time highs.
  • Rejection Scenario: A rejection at this level, especially if accompanied by low trading volume, could lead to a retracement targeting liquidity-rich zones below, such as the weekend lows.

Support Levels to Watch

If Bitcoin fails to clear the $108,900 resistance, traders should monitor the support zone near the weekend’s lows, which is reinforced by:

  • The point of control (POC).
  • The 0.618 retracement level.
  • The value area low.

Historically, Bitcoin has exhibited a tendency to sweep weekend lows before initiating major price moves, a behavior typical of its liquidity-driven nature. This adds significance to the support cluster near $104,000 as a potential retracement target.

What to Expect Next

Bitcoin is currently at a critical inflection point. A successful breakout above $108,900 with strong volume would significantly increase the likelihood of a rally toward new all-time highs. However, a rejection at this level could lead to a liquidity sweep, with a potential pullback to support zones around $104,000. Traders and investors should closely monitor Bitcoin’s behavior at this level, as it will likely set the tone for this week’s trend.

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