Bitcoin Bounces Off Key Demand Level – Price Discovery On The Menu?

[Ben Graham]

Bitcoin has experienced heightened volatility over the past few days, moving between critical levels as market participants await a clear breakout or breakdown. After testing $105,000 as support, BTC rebounded strongly and pushed back toward the $109,000 resistance zone—an area that has capped upward momentum for several weeks. While bulls remain in control of the broader structure, price action continues to show hesitation just below the all-time high, leaving the market in a state of uncertainty.

To confirm the next leg of the long-term trend, Bitcoin needs to break into price discovery territory above $112,000 with strong volume and follow-through. Until that happens, the current range-bound conditions could persist, especially as traders weigh macro factors and profit-taking activity increases.

Top analyst Jelle shared a technical analysis pointing to another strong bounce from the 50-day moving average and exponential moving average (MA/EMA) cluster, key dynamic support levels that have repeatedly triggered bullish reactions. This bounce reinforces the underlying strength in the current trend, suggesting that buyers continue to step in at crucial levels. As long as BTC holds above this support zone, the path toward a breakout remains intact—but confirmation is still needed.

Bitcoin Prepares For Expansion Phase

Bitcoin appears poised to enter a new expansive phase, with a breakout above its all-time high potentially triggering a fresh wave of bullish momentum, not just for BTC, but for the broader crypto market. After weeks of grinding just below the $112,000 resistance level, Bitcoin has struggled to push decisively higher. However, the structure remains bullish, and buyers have consistently defended key demand zones around $105,000. This ability to maintain higher lows during a period of consolidation signals strong market control by the bulls.

According to Jelle, Bitcoin has just seen another powerful bounce from the 50-day moving average and exponential moving average (MA/EMA) cluster—an area that has historically acted as a dynamic support zone. Each time BTC has touched this cluster in recent months, it has rebounded with renewed strength, and the latest bounce is no exception. Jelle believes this reaction confirms the uptrend remains intact, with conditions aligning for a breakout.

“The trend is up—new all-time highs are very much on the menu this week,” Jelle noted, emphasizing the importance of sustained momentum above current resistance. If Bitcoin can close decisively above $112K, it would likely ignite a surge in altcoins, many of which have lagged during BTC’s dominance-driven phase. With bulls maintaining control and technical support holding firm, the market is now watching for confirmation that Bitcoin is ready to enter price discovery once again. A successful breakout could mark the beginning of the next major leg in the crypto cycle.

BTC Tests Resistance Again After Volatile Bounce

Bitcoin is once again pushing toward the critical $109,300 resistance level after bouncing strongly from the $105,000 support zone. The 12-hour chart shows a series of failed breakouts above the $109K level in recent weeks, highlighting the strength of this resistance zone. However, bulls have continued to defend higher lows, maintaining overall market structure and preventing deeper corrections.

The latest candle shows a 1.93% surge, reclaiming the 50- and 100-period moving averages around $106,000, a key short-term cluster that previously acted as support. Volume also picked up during this bounce, suggesting renewed buying interest as Bitcoin tries to establish bullish momentum.

Still, the rejection just below $109,300 remains a concern. If BTC fails to break and close above this range soon, the risk of a return to the $103,600 demand zone increases, especially in the face of rising volatility and profit-taking across the network.

Featured image from Dall-E, chart from TradingView