Bitcoin Bulls Face Moment of Truth at Resistance Level $106,500: Details

The famous digital asset analyst with the handle Crypto Patel has declared that Bitcoin is currently testing the important price resistance level at the price zone of $106,500. Based on the performance of the asset at this level, BTC investors can expect the price to either continue rising or experience a significant fall. After rising above $105,000 on May 12, Bitcoin has remained within range, with no significant price fluctuations since then. However, the bullish sentiment remains high as evidenced by U.S. spot BTC ETFs attracting nearly $2 billion in net weekly investments. Bitcoin is at a crossroads: Can the buyers push the price up to the resistance level of $120,000 or will it fall to $75,000? In a post on X on May 16, Crypto Patel shared a simple technical analysis of Bitcoin's price movements, highlighting the current key support and resistance levels. According to the analyst, Bitcoin's most recent price increase indicates that the asset is testing the important resistance level around the price zone of $106,500. Notably, this resistance level has proven effective in causing price rejections in December and January. If the Bitcoin buyers can command enough market demand to overcome this price barrier, Crypto Patel predicts that this leading cryptocurrency will maintain its current upward trend with an initial price target set at $120,000.

On the other hand, another price rejection could damage the expectations of current investors, as such negative developments would force the price below the important support zone of $90,000 to trade as low as the current market bottom of $75,000. This anticipated correction suggests a potential fall of 27.1% from the current market price despite the currently strong bullish sentiment. Interestingly, the Relative Strength Index (RSI) indicates that Bitcoin has recently fallen from the overbought zone, thus supporting the prediction of an impending price correction. However, macroeconomic developments such as the 90-day tariff ceasefire agreement between the United States and China, and strong institutional investment, enhance the potential for the continued bullish trend. Bitcoin Price Prediction At the time of the press report, Bitcoin was valued at 103,355 dollars after a fall of 1.62% in the previous week. However, the monthly performance of this digital asset reflects an increase of 21.46%, signaling that most newcomers to the market are still in profit. According to the prediction site CoinCodex, investors are showing a high level of greed as the Fear & Greed Index is at 74. Coincodex analysts predict that Bitcoin will reach a value of 127,872 dollars in the next five days, followed by a price adjustment bringing it back to around 111,616 dollars.

For long-term investments, analysts predict Bitcoin will reach a valuation of 155,583 dollars in three months and 148,167 dollars in six months.