Bitcoin surges 3.8% to $108,495, tests $109,000 resistance

Bitcoin has surged from $104,500 to $108,495, positioning itself near the $109,000 resistance zone. This zone is significant as it includes multiple technical barriers, such as a breakdown point, a Fibonacci level, and the upper VWAP band from a previous range on the chart. Traders are closely monitoring this level, anticipating either a rejection or a breakout toward the prior high at $110,646.

Bitcoin's recent rally has created a visible price gap, testing a critical resistance near $109,000. This resistance zone is defined by a confluence of technical indicators, including volume, Fibonacci levels, and VWAP indicators. The upper edge of the Monthly VWAP bands, which many traders use to identify price extremes, is within this resistance range. Additionally, this zone marks the value area of a previous distribution range and the breakdown point from earlier sessions.

Within the $109,000 to $109,517 resistance range, the chart overlays show a point of volume imbalance that closely matches a 0.75 Fibonacci retracement. This alignment suggests a strong zone of supply and possible rejection. The visible gap around the monthly open created a demand block that now serves as support near $104,500, which has supported the current rally. Traders watching the volume profile may view this area as structurally important.

The sharp rise above $108,000 came with aggressive momentum. However, the chart suggests the $109K range may act as a ceiling unless volume breaks out convincingly above the previous high near $110,646. A crypto trader indicated an active trading approach, willing to scalp shorts around the resistance zone while taking profits on long positions. This strategy reflects caution as the rally meets key resistance levels.

For traders seeking alternative setups, the commentary suggested using shorts on assets like ETH or smaller altcoins. These setups may be preferred for their volatility and wider stop-loss flexibility. This diversification may help manage risk if Bitcoin holds above current levels. The critical question now is whether Bitcoin has the momentum to clear the $109K resistance zone and reclaim recent highs. This area includes multiple signals of historical resistance and technical significance. If price fails here, traders may anticipate a retracement toward $106K or even lower support near the monthly open.

Market observers will closely watch how price reacts at the upper VWAP band and the range breakdown point. The presence of sell volume or rejection wicks could signal exhaustion and a pending reversal. However, a clean breakout above $109,517 would likely attract momentum traders and possibly reopen bids toward the $111,000 mark. This zone represents the high from the last major swing and would serve as a natural upside target.