Bitcoin Breaks $109,000 Resistance, Traders Eye Next Move

Bitcoin has recently breached the significant resistance level of $109,000, sparking both excitement and caution among market participants. Currently trading around $109,252, this move follows a sharp rally from the $100K zone earlier this month. While bulls are optimistic about the breakout, market watchers are wary, given the potential for a false breakout similar to the one observed in late May.

The key question now is whether Bitcoin can sustain its position above $109,000 or if it will revert to the 38.2% Fibonacci retracement level around $106,700. Historical patterns show that a similar breakout in late May quickly reversed, dropping nearly 10%. This pattern is fresh in the minds of short-term traders, adding to the uncertainty.

The 2-hour chart indicates that Bitcoin has pulled back slightly after peaking at $109,678. The Relative Strength Index (RSI) is hovering near 67, suggesting possible short-term exhaustion. If this is another fakeout, Bitcoin could revisit the 38.2% Fibonacci level near $106,700, which aligns with the 50-period Simple Moving Average (SMA) now sitting at $106,032. This area becomes critical support for the short-term trend.

In the bullish scenario, if $109K flips into solid support, this breakout could fuel a larger rally toward the next target at $115,000, especially if macro news or ETF flows remain supportive. Conversely, a failure to hold $109K, combined with RSI divergence or declining momentum, could trigger a retracement toward $106.7K, or even $103.3K in a deeper pullback.

Ask Aime: Is Bitcoin's recent price spike a sign of a new bull run or a temporary rally?

The current breakout is promising, but traders should watch closely for confirmation or invalidation. Price action over the next 24–48 hours will reveal whether $109K is the new launchpad—or just another bull trap. The bullish scenario predicts a retest and hold above $109,000, confirming breakout strength with the next target at $115,000. The bearish scenario suggests a failure to hold $109K, likely leading to a retracement to $106,700 or even $103,343.