Renowned digital asset analyst with X handle Crypto Patel has remarked that Bitcoin is presently retesting a vital price resistance at the $106,500 level. Based on the asset’s actions at this stage, BTC investors might anticipate a bullish price advancement or a notable price retracement.
Following a brief surge above $105,000 on May 12, Bitcoin has remained within a trading range, displaying no substantial price fluctuations since then. Nevertheless, bullish sentiments persist as evidenced by US BTC spot ETFs accumulating nearly $2 billion in net weekly investments.
Bitcoin At A Junction: Can Bulls Propel To $120k — Or Is A Drop To $75k Imminent?
In an X post on May 16, Crypto Patel presents a straightforward technical assessment of Bitcoin price fluctuations, emphasizing the current significant support and resistance levels. As per the analyst, Bitcoin’s latest price increase indicates that the asset is retesting a vital resistance near the $106,500 level.
Importantly, this resistance zone has historically proven effective in triggering price rejections in December and January. If Bitcoin bulls can muster sufficient market demand to overcome this price hurdle, Crypto Patel forecasts that the leading cryptocurrency will maintain its existing uptrend with an initial price objective set at $120,000.
Conversely, another price rejection could jeopardize current investors’ expectations, as such adverse developments would push prices below the pivotal $90,000 support zone, potentially trading as low as the current market floor at $75,000. This anticipated correction signals a possible 27.1% decline from the present market value despite currently robust bullish sentiments.
Curiously, the Relative Strength Index (RSI) indicates that Bitcoin has recently retreated from the overbought zone, thereby reinforcing forecasts of a forthcoming price correction. However, broader economic factors such as the 90-day tariff ceasefire between the US and China, along with strong institutional investment levels, enhance the likelihood of continued bullish momentum.
Bitcoin Price Forecast
As of now, Bitcoin is valued at $103,355 after experiencing a 1.62% drop over the past week. Nonetheless, the asset’s monthly performance indicates a 21.46% surge, signaling that most new market participants remain in profit.
According to the forecasting site, CoinCodex, investors exhibit a high level of avarice as revealed by the Fear & Greed Index at 74. CoinCodex analysts expect Bitcoin to reach $127,872 in the next five days, followed by a price correction that will revert prices to approximately $111,616.
For long-term prospects, the analyst anticipates Bitcoin to achieve a valuation of $155,583 in three months and $148,167 in six months.
