Bitcoin Surges 4.5% to $105,000 Amid Bullish Momentum and Bearish Concerns

Bitcoin has surged above the $105,000 mark, reclaiming a significant level after a brief dip below support earlier this week. This price action indicates renewed bullish momentum, with the cryptocurrency climbing above the $104,000 level following a 4.5% surge. The price movement is part of a broader market rally, with Bitcoin trading around $105,000, down from a recent high of $111,814. Despite the overall bullish sentiment, there are concerns about the sustainability of this rally.

On-chain data shows that network activity metrics related to Bitcoin have increased while the coin's price has been ranging around $105,000. This suggests that there is significant interest and activity within the Bitcoin network, which could support further price gains. However, analysts have identified several factors that could contribute to a bearish outlook for Bitcoin.

Crypto analyst Anup Ziddi highlighted that Bitcoin's price is trading below a crucial level of $107,000, which has acted as resistance in its recent attempts to reach new all-time highs. The inability of bulls to surpass this level has made $107,000 a key barrier for any upward movement. Ziddi noted that as long as Bitcoin remains below this level, the likelihood of further crashes increases. The first potential target for a decline is $103,500, followed by $102,500, with $100,000 serving as the final support level before major declines.

In addition to the technical resistance at $107,000, worsening geopolitical situations have been cited as a catalyst for Bitcoin's decline. The renewed tariff wars have sent financial markets into turmoil, impacting Bitcoin's price negatively. Another analyst echoed the bearish sentiment, attributing the decline to factors such as liquidity sweeps, fair value gaps, and market structure. The analyst described the rise above all-time highs as a stop hunt rather than a genuine breakout. The fair value gap, sitting at $105,600 and $106,000, has not been reclaimed by Bitcoin, increasing the probability of further pullbacks. The breakdown that brought Bitcoin's price back to $104,300 is seen as the first sign of bearish continuation. The analyst predicts that if the price returns to this imbalance and shows rejection, it could continue to decline, with targets at $104,300 and ultimately down to $103,600.

In summary, the bearish sentiment surrounding Bitcoin is driven by its inability to surpass the $107,000 resistance level, worsening geopolitical tensions, and technical factors such as liquidity sweeps and fair value gaps. Analysts predict that if these conditions persist, Bitcoin's price could continue to decline, with potential targets at $103,500, $102,500, and ultimately $100,000. The overall market sentiment remains cautious, with no clear end to the bearish trend in sight. Despite the current bullish momentum, investors should remain vigilant and monitor these factors closely.