Bitcoin’s $104K Floor: Will It Spark a Surge to $130K or Trigger a Major Pullback?

Bitcoin’s recent price movement has come under close observation as it rebounds from a significant support zone, with experts stressing the necessity of holding crucial levels to keep the bullish trend alive. The digital asset jumped from $98,000 to above $107,000 in just one day, fueled by a ceasefire in the Middle East and ongoing depreciation of the dollar Bitcoin Recovers from $98k to $107k: Key Support and Resistance Levels [ 1 ]. This upward move has ignited discussions about whether the market is preparing for another surge or if a breakdown of support could trigger a correction.

From a technical standpoint, $104,705 is identified as the first major support. Should Bitcoin fall below this point, it could set off a decline toward $101,060 and possibly $98,162—levels that have previously served as psychological thresholds for market participants Bitcoin Recovers from $98k to $107k: Key Support and Resistance Levels [ 1 ]. On the resistance side, $107,742 and $110,629 are seen as critical. Surpassing these could confirm a broader bullish pattern, especially in light of the Federal Reserve’s dovish tone and institutional

Investor actions further highlight the market’s delicate state. According to Glassnode, Bitcoin holders are currently sitting on $1.2 trillion in unrealized profits, averaging a 125% gain. Despite these profits, selling has slowed, with most investors choosing to hold rather than sell Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ]. This holding behavior is supported by robust support at $98,300, which is the average entry price for short-term investors. Still, analysts warn that continued selling by long-term holders—ongoing since spot ETF launches in January—continues to weigh on momentum Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ].

Broader economic trends remain influential. The probability of a Federal Reserve rate cut in July has risen to 23%, according to the CME FedWatch Tool, boosting risk appetite Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ]. Regulatory developments, such as the Fed’s move to stop factoring “reputational risk” into crypto banking reviews, have also encouraged more institutional involvement Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ]. These factors coincide with Bitcoin’s tight trading range near recent highs, and some analysts believe a breakout to $130,000 is possible if volume and technical patterns persist Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ].

Despite the positive outlook, some caution remains. Bitfinex analysts point out that Bitcoin’s climb from $73,000 to $107,000 has lost steam, partly due to waning momentum and profit-taking by those who bought below $80,000 Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ]. They suggest that the next significant move will be shaped by macroeconomic events, including Federal Reserve actions and institutional interest. Meanwhile, the Altcoin Season Index has dropped to 69 from a high of 100, indicating that capital is shifting back to Bitcoin, while

To sum up, Bitcoin’s short-term direction depends on its ability to maintain key support levels. A decisive drop below $104,705 could lead to a deeper pullback, while holding above this mark may set the stage for further consolidation or renewed upward movement. Experts recommend that traders keep a close eye on these technical levels and macroeconomic indicators, as the interplay between chart patterns and overall market sentiment will likely determine Bitcoin’s trajectory in the near future.