Bitcoin Surges 5% to $106,652 Amid Bullish Market Sentiment

Bitcoin has recently surged past the $107,000 mark, marking a significant milestone in its recent price trajectory. The cryptocurrency experienced a 5% increase over the past 24 hours, reaching $106,652 and approaching the $107,000 threshold. This upward movement follows a period of consolidation and a brief dip below $100,000. The technical analysis indicates that Bitcoin faces strong resistance in the $105,000 to $107,000 range, which aligns with the upper edge of the current descending trend. Despite this resistance, the overall market sentiment remains bullish, driven by expansionary fiscal policies and expectations of rate cuts.

The recent rally in Bitcoin's price can be attributed to several factors, including geopolitical events and market sentiment. The symbolic retaliation by Iran against US strikes was viewed as the last attack before de-escalation, which contributed to the market's optimism. This sentiment was further reinforced by the confirmation of the end of the conflict, leading to an extension of the rally. The path of least resistance for Bitcoin remains to the upside, supported by the expansionary fiscal policies and the Fed's reaction function, which is either to wait more or cut rates.

On the daily chart, Bitcoin's month-long consolidation has formed a bullish flag pattern. The target for this pattern is generally a projection of the flag "pole," which in this case would be the rally since April 9. This puts the target around the $135,000 level, with a more conservative estimate of $125,000 having higher probabilities. On the 1-hour chart, the bullish momentum is waning around the key resistance at the $107,000 level. Buyers will need a break above this resistance to increase their bullish bets, targeting the $109,000 level next. Sellers, on the other hand, are likely to step in around these levels, positioning for a drop back into the lower bound of the flag around the $100,000 level.

The minor upward trendline defining the bullish momentum for now suggests that a break to the downside would give sellers more conviction to pile in for a drop. However, dip-buyers will still have minor support around the swing low. If Bitcoin breaks below $100,000 with volume, it could head towards the next support zone. On the other hand, if the current structure breaks above $107,000 with volume, Bitcoin could extend to $109,400 and potentially $114,800. A clean flip of the $107,800 level could also open room toward $112,000–$115,000.

The recent price action of Bitcoin has been marked by sharp fluctuations, beginning near $107,000, briefly surpassing $110,000, and then plunging below $100,000. This volatility has been fueled by new Bitcoin whales entering the market, contributing to the overall market volatility. Despite these fluctuations, the bullish sentiment remains strong, with Bitcoin holding above $106,000 and breaking through $107,000, potentially leading to a fresh push toward $108,500 – $110,000. The comeback is real, and the bulls are in control, supported by the overall market sentiment and technical analysis.