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Bitcoin finds itself once again at a pivotal point after regaining crucial levels beyond the $105,000 threshold. Throughout the weekend, BTC underwent significant volatility instigated by the US military’s assault on Iran’s nuclear sites, inciting alarm across worldwide markets. However, yesterday’s declaration of a truce between Israel and Iran provided relief, propelling a significant recovery in Bitcoin’s valuation.
This week is anticipated to be crucial in shaping Bitcoin’s short-term direction. While bulls have succeeded in regaining dominance in the short run, uncertainty persists due to global tensions and economic challenges. On-chain insights from CryptoQuant offer additional perspective on the current market dynamics. Since mid-April, the Realized Cap of the 0–1 month age group has risen by $66 billion.
In spite of this selling pressure, Bitcoin has remained within a tight range, indicating that demand is sufficiently robust to absorb recent gains. If bulls can capitalize on this momentum, Bitcoin may be positioning itself for its next significant move. Attention is now focused on whether BTC can exceed $109K to revisit all-time peaks.
Bitcoin Stabilizes As Market Addresses Profit-Taking Pressure
Recently, Bitcoin experienced remarkable volatility, plunging to $98,000 before staging a swift recovery above the $105,000 level. This rebound occurs amid increasing concerns regarding a potential double top formation, which has intensified bearish sentiment among market participants. Nonetheless, on-chain metrics continue to indicate a robust market structure with no apparent warning signs of an impending collapse.
As per leading analyst Axel Adler, since April 13, the Realized Cap of the 0–1 month age group has seen an increase of $66 billion. This figure signifies considerable profit-taking activity from short-term holders who entered the market during the upswing. Approximately 720,000 BTC have been sold during this timeframe, contributing significant supply pressure to the marketplace.
What stands out is Bitcoin’s ability to absorb this selling volume without collapsing. Prices have largely remained within a narrow consolidation range, indicating that buyers are stepping in to counter the outflow. Such accumulation frequently signals inherent strength, even when price actions seem ambiguous.
The broader market is now closely observing whether Bitcoin can maintain its momentum above $105K and approach retesting the $109K–$112K resistance area. Until then, consolidation remains the prevailing trend, potentially foreshadowing the next significant move.
BTC Challenges Resistance After Reclaiming $105K
Bitcoin’s 4-hour chart illustrates a robust rebound from the $98,000 lows, with the price presently fluctuating around $105,300. This movement follows a notable surge in buying momentum that propelled BTC above the pivotal $103,600 support-turned-resistance threshold. The reclamation of this level, along with a decisive close above the 50 and 100-period moving averages, signifies renewed bullish interest.
Volume has also surged notably during this latest rebound, indicating genuine market involvement and not merely a short squeeze. However, BTC is now nearing a significant confluence zone between $105,500 and $106,000, where the 200-period moving average and a recent horizontal resistance area intersect. This range has served as a rejection territory multiple times in June, and the price behavior here will determine if BTC can aim for the following resistance at $109,300.
Until BTC surpasses $106K with substantial volume, the wider market structure remains neutral to slightly bullish. The higher low established during the rebound from $98K provides bulls with some confidence, but confirmation will only materialize if the price stabilizes above the 200-MA and advances towards the May peaks.
Featured image from Dall-E, chart from TradingView
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