Bitcoin Reclaims 0.786 Fibonacci Level After 5.5% Decline

Bitcoin's price began the European session on Monday with a modest rebound, reaching $105,500 after experiencing a 5.5% decline from $109,000 to $103,200 the previous week. This retracement pushed the price below the 0.786 Fibonacci level of the rally that culminated at the all-time high of $112,000, indicating profit-taking as the month came to a close.

Despite the late-May weakness, Bitcoin managed to close the month with an 11% gain, following April’s 14% rise. This two-month strength suggests that the broader bullish structure remains intact. However, recent developments emphasize the importance of reclaiming critical resistance zones to maintain upward momentum.

The price rebounded from $103,200 over the weekend, reclaiming the 0.786 Fibonacci level. However, during the Asian session, the price encountered resistance near $105,800. This level coincides with both the 0.618 Fibonacci retracement, commonly known as the golden ratio, and the 100 EMA on the 4-hour chart. This confluence represents the most immediate barrier for bulls.

As the European session opens, Bitcoin is attempting another retest of this resistance zone. However, the upside remains constrained by the bearish crossover structure on the 4-hour chart, where the 20 EMA crossed below both the 50 and 100 EMA following last week’s slide. Although the 20 EMA has been reclaimed at $105,350, the 50 EMA at $106,000 is the next hurdle before further upside can be considered.

Momentum also reflects indecision. The RSI holds around 50, indicating neither overbought nor oversold conditions. This supports the idea of a key inflection point, where the next move will depend on whether the price breaks above the golden ratio or slips back toward support.

If bulls fail to reclaim the $106,000 to $107,000 resistance band, the downside could revisit the previous week’s low at $103,200. Conversely, a break above $107,000 would likely confirm a broader bullish continuation for early June.

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