Bitcoin has resumed its upward momentum, breaking above the $105,000 mark in Tuesday’s early trading. With bullish pressure mounting, BTC is now targeting the key resistance zone of $106,500 and potentially higher levels if the momentum continues.
Per data from Kraken, the BTC/USD pair breached short-term resistance at $103,200 and $103,500, climbing toward $106,000. The rally began after Bitcoin reclaimed critical support zones, with price action now showing firm bullish intent.
Bullish Momentum Accelerates
According to the hourly chart, BTC is currently trading above $105,000 and the 100-hourly simple moving average (SMA). A bullish trend line is forming near the $106,000 level, reinforcing support and suggesting further upside potential.
The price has already cleared the 76.4% Fibonacci retracement level from the previous swing high at $106,470 to the swing low of $98,276. This move has opened the door for BTC to test its next critical resistance near $106,500.
If this level is breached convincingly, Bitcoin could surge toward $107,200 and $108,500—the latter being the 1.236 Fib extension level. A sustained close above $108,500 might push the price toward the psychological barrier at $110,000, and further up to $112,000 in the short term.
Support Levels to Watch
On the downside, immediate support lies at $106,000, with stronger support at $105,500. If Bitcoin fails to maintain its current gains, a dip below $105,000 could pull the price down to $104,200, and possibly $103,500.
Deeper corrections could test the critical floor at $102,000, which previously acted as a strong pivot zone during last week’s volatility.
Market Sentiment and Indicators
The MACD on the hourly chart is now showing signs of gaining pace in the bullish zone, while the RSI (Relative Strength Index) for BTC/USD remains above 50—both indicators pointing to continued buyer dominance.
This rally follows a relief bounce that began after President Donald Trump confirmed a ceasefire, easing geopolitical tensions and reducing global risk-off sentiment. With broader financial markets stabilizing and risk appetite returning, Bitcoin may continue to benefit from safe-haven flows.
Can BTC Hit a New All-Time High?
With bullish sentiment improving and price structure favoring upward continuation, traders are watching for a clean break above $106,500. If buyers maintain pressure and the macro backdrop remains stable, the market could be preparing for a run toward Bitcoin’s all-time high territory in the coming weeks.
However, failure to convincingly clear the $106.5K resistance could bring consolidation or a retracement toward the lower support zones.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
