Bitcoin Near $104K Rally Shows Promise but Bears Still Hold Control — Bullish Rebound Not Confirmed Yet
Bitcoin's recent rebound to nearly $104,000 has sparked optimism among traders, yet technical indicators suggest that the cryptocurrency's bullish momentum remains fragile.
On June 5, Bitcoin experienced a significant decline, breaking down from a head-and-shoulders (H&S) pattern—a classic bearish reversal formation. This breakdown typically signals a shift from bullish to bearish sentiment. The subsequent rally to approximately $104,000 appears to be a "breakdown and retest" scenario, where the price revisits the neckline of the H&S pattern, a common behavior in technical analysis. Such retests often lead to renewed selling pressure if the resistance holds.
Immediate support levels are identified at $100,000 and $95,500. The latter is derived by subtracting the height of the H&S pattern from the breakdown point, a method used to project potential downside targets. Conversely, a decisive move above $107,000 is necessary to invalidate the bearish setup and shift focus toward new highs.
While the recent price bounce is encouraging, Bitcoin's technical outlook remains cautious. Traders should monitor the $104,000–$107,000 resistance zone closely; a failure to break above this range could lead to further declines. Conversely, a breakout above this level may signal a return to bullish momentum.
