‎Bitcoin Hits New All-Time High Above $106,200 As Major Pullback Looms

‎BTCUSD Market Analysis – May 24

‎Bitcoin (BTCUSD) has shattered previous records by breaking above the long-standing $106,200 resistance level, signaling renewed bullish strength but also raising expectations of an imminent corrective pullback.

‎Bitcoin (BTCUSD) Key Levels‎

‎Support Levels: $89,400.00, $74,600.00
‎Resistance Levels: $106,200.00, $120,000.00‎

BTCUSD Long-Term Trend: Bullish

‎Bitcoin has surged to a new all-time high, decisively breaching the key resistance level at $106,200. This level first presented significant resistance in mid-December 2024, halting further upward momentum. In January 2025, price action revisited this level but failed once again, initiating a notable bearish retracement.

‎The resulting downtrend marked a corrective phase as sellers temporarily regained control. This correction led to a breach of the $89,400 support, eventually pushing BTCUSD towards the $74,600 demand zone. It was at this point that bullish momentum regained strength, triggering a robust reversal.
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‎The renewed bullish wave was powerful enough to overcome the $106,200 supply zone, propelling price to a new historical peak. However, with the daily Relative Strength Index (RSI) signaling strong overbought conditions, a major pullback appears imminent. Given the recent bullish break in market structure, such a correction would be considered a healthy retracement within the overall uptrend.‎‎

‎BTCUSD Medium-Term Trend: Bearish

‎Despite the prevailing bullish long-term structure, medium-term indicators suggest a bearish correction is on the horizon. The breach of the $106,200 resistance has led to overbought conditions on the 4-hour RSI, reinforcing the likelihood of a short-term bearish move.
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‎Liquidity appears to be building below the recent higher lows of the current bullish leg. This liquidity could act as a magnet for price, potentially triggering a downward move. Should price break below this higher low, it would confirm a bearish shift in the medium-term structure, in line with RSI divergence and momentum exhaustion.

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