What happened?
Bitcoin has broken a two-week losing streak, rebounding from $100,200 to over $107,600. This recovery was triggered by a bullish engulfing candle that pierced a key resistance at $106,800, now serving as short-term support. The Relative Strength Index (RSI) is near overbought levels, signaling the rally gains strength but could face resistance at $108,905.
Who does this affect?
This affects traders, investors, and institutional players watching Bitcoin closely for trading opportunities. Those using technical analysis will find the recent momentum reversal significant, while smart money is focusing on key cost-basis support levels at $103,700 and $95,600. Long-term holders might also take note, as June historically shows positive returns despite some pressure to take profits.
Why does this matter?
The price movement in Bitcoin impacts not only individual portfolios but also broader market sentiment and investment strategies. A confirmed breakout above resistance levels could invite more bullish trades and increase market confidence, boosting prices further. However, failure to maintain current levels could trigger corrections, making key support zones crucial for preventing significant declines.