Bitcoin: Watch This Level For The Next Big Move
Bitcoin is showing early warning signs of a reversal, but this one level is key.
Watch today’s video below to see how I’m trading BTC near all-time highs. I also share an update on Tether dominance (USDT.D) that you won’t want to miss.
Bitcoin has been in rally mode since sweeping $77,000 support in early April. The 50% rally has been incredibly aggressive but not surprising to those who frequent the crypto market.
However, last week, I started warning traders of a potential local top. We often see BTC sweep established highs or lows before reversing, and this might be one of those times.
The $106,000 to $110,000 area served as resistance in late 2024 and early 2025. Those highs held for several months while Bitcoin corrected toward the key $74,000 support area.
Knowing that buy-side liquidity had accumulated above $106,000 to $110,000, a sweep seemed likely. That’s precisely what occurred on May 22nd.
First breakout attempts often fail. The breakout itself is usually market makers using open liquidity to fill large orders. In this case, they were filling sell orders above $110,000.
Today, BTC is at risk of breaking its April trend line at $108,500. There have been several touches off of this level since the rally began, making it one to watch.
That said, $106,000 is more significant. Although it’s still support, I wouldn’t be surprised to see a sustained break below $106,000 for an eventual retest of the $101,000 lows.
Another key factor for Bitcoin is the $96,000-$98,000 imbalance. That could serve as a magnet should BTC sellers force a sustained move below $106,000 on the high time frames.
There’s also an imbalance near $86,000. That said, the recent $92,000 reclaim was incredibly significant, so I wouldn’t bank on a move that low just yet.
To reiterate, $106,000 is incredibly significant for Bitcoin. It also remains a key support as of this writing. It will take a sustained break below to expose downside targets, such as $101,000 and $98,000.
Alternatively, a sustained break above $110,000 would lessen the odds of a correction.
