‎Bitcoin Hits All-Time High Above $106K, But Bearish Retracement Signals Caution

‎BTCUSD Market Analysis- May 30

‎Bitcoin reached a new all-time high above $106,000, but signs of weakening momentum and technical indicators now signaling a Bearish shift in short-term market sentiment.

‎Bitcoin (BTCUSD) Key Levels

‎Support Levels: $78,300.00, $66,500.00
‎Resistance Levels: $91,600.00, $106,000.00

‎BTCUSD Long-Term Trend: Bullish

‎Bitcoin has maintained a dominant bullish trend in recent months, with price action surging past the psychological $106,000 level to establish a new all-time high. This uptrend has been characterized by multiple bullish waves, each reinforcing investor confidence and pushing the price higher.
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‎However, the recent price action suggests that this bullish momentum is cooling off. After initially facing rejection around the $106,000 mark, Bitcoin experienced a notable retracement. This pullback was driven in part by a steep decline in the daily Relative Strength Index (RSI), which signaled weakening bullish strength.
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‎Price eventually found temporary support around the $78,300 demand zone—an area where the RSI indicated oversold conditions. This setup triggered a renewed bullish push that culminated in the formation of the new all-time high. Despite this, the RSI has again moved into overbought territory, suggesting that the market may be due for a correction. Historical patterns show that overbought conditions often precede bearish pullbacks, adding to the current caution in the market.
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‎Furthermore, the breach of the bullish trendline provides additional confluence for a bearish retracement. While the long-term trend remains technically bullish, current market signals point toward a deeper corrective phase in the short term.

‎BTCUSD Medium-Term Trend: Bearish

‎On the 4-hour chart, the bearish structure is becoming more pronounced. Price action has recently formed a failed high pattern and broken below a previous low—clear signs of a shifting market sentiment. The market structure is tilting bearish in this timeframe.
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‎The 4-hour Moving Average also supports this view, with BTCUSD now trading below the indicator. While the broader trend remains upward, this short-to-medium-term bearish retracement could be significant.‎

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