The recent pullback of Bitcoin has established a significant volume-based resistance level near $108,300, while support is forming in the $106,700-$107,000 range.
The correction intensified with a noticeable price surge from $107,373 to $107,671 between 13:06-13:36, only to experience a sharp reversal afterward.
Technical analysis indicates that Bitcoin is currently trading within a compression zone, caught between two crucial fair value gaps that will dictate the market’s future direction.
If the bulls manage to reclaim the $109K to $110K zone, prices could advance toward resistance beyond $112K. Conversely, a drop below $107,000 may test liquidity around $106K.
Technical Analysis Breakdown
- The decline accelerated during the 22:00-23:00 hour on May 24th, marked by exceptionally high volume (16,335 BTC), leading to strong volume-based resistance at approximately $108,300.
- Support has emerged in the $106,700-$107,000 range, where buyers stepped in during the 09:00-10:00 timeframe on May 25th. However, recovery attempts have been modest, with price stabilizing around $107,500.
- The overall technical setup suggests a short-term bearish trend with scope for further consolidation before a clearer direction is revealed.
- Bitcoin showed notable volatility with a price surge from $107,373 to $107,671 between 13:06-13:36, followed by a rapid decline to $107,393 by 14:00.
- The most significant price movement during this period occurred in the 13:35 candle, where BTC surged nearly $150 against exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
- Support was noted near $107,400, where buyers returned during the final minutes of the period. Yet, the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.
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