After reaching a historic peak, Bitcoin is encountering technical and fundamental headwinds. Find out why the price may retest $92,000 before targeting $120,000 in the medium term.
The cryptocurrency market is known for its volatility, and the price of Bitcoin is no exception. After reaching a historical peak around $112,000 in mid-May 2025, BTC has experienced a downward trend despite sustained interest from institutional investors in physical bitcoin.
Over the past few days, Bitcoin has faced a significant resistance around $108,000, before slightly retreating to around $106,472 during the North American session. Technical analysis reveals a bearish trend, with a declining daily RSI and the MACD line crossing below the zero line. This setup suggests potential retesting of support at $92,000 in the coming weeks, a level previously established above $76,000.
Indeed, the Volume Profile indicates two potential rebound and support zones in case of failure to break this $108,000 resistance. The first one is around $102,800 and the other between $96 and $92,000.
Additionally, the Bitcoin market is facing increased bearish sentiment, fueled by a cumulative short liquidation leverage of around $12 billion around $112,000. Institutional investors may be looking to drive down the price of BTC through futures and leverage markets to accumulate more bitcoins before a potential parabolic rally.
On-chain data reveals aggressive accumulation of Bitcoin by institutional investors, with 251 entities holding more than 3.47 million Bitcoins in their respective reserves. This ongoing accumulation could further influence the price of Bitcoin in the short and medium term.
In conclusion, various technical and fundamental factors suggest that the price of Bitcoin could undergo a correction towards $92,000 before continuing its upward trajectory towards $120,000 in the medium term. It is crucial to closely monitor these indicators to anticipate market movements and make informed decisions in the dynamic cryptocurrency environment.
In the short term, it will be essential to monitor the support at $105,000 and the resistance at $108,000. According to analyst Lemon, Bitcoin could bounce between $97 and $100,000 in the coming weeks.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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