Bitcoin Smashes Against Critical Resistance – $106,600 Breakout Would Signal Bullish Capitulation

Bitcoin's grinding ascent faces a make-or-break moment as it tests a stubborn resistance level. Traders are glued to charts, waiting to see if the king of crypto can punch through.

The magic number? $106,600. Clear that, and the bulls take control. Fail, and we're back to range-bound purgatory—where hedge funds pretend to 'accumulate' while retail gets rekt.

Either way, grab popcorn. When BTC flexes its volatility muscles, even the 'stablecoin maximalists' start sweating.

Bitcoin Nears All-Time High As Macroeconomic Conditions Tighten

Bitcoin is now just 6% below its all-time high of $112,000, and all signs point to the next MOVE being critical for the broader market trend. After surging over 50% from its April lows, BTC is showing clear strength, but the rally has paused just below a major resistance level. The $112K zone now acts as the final ceiling before price discovery resumes. If bulls manage to push through, it could trigger a wave of renewed momentum across the market.

However, the backdrop isn’t without risk. Bitcoin’s consolidation comes as global tensions escalate, particularly between the US and China. Trade conflicts, sanctions, and geopolitical uncertainty continue to feed systemic instability, and with US bond yields on the rise, investors are weighing the implications of a tighter financial environment. These macro pressures have historically impacted crypto liquidity and could still act as a headwind.

On the technical front, Rekt Capital notes a significant development: bitcoin is breaking out of its two-week downtrend on the Daily timeframe — marked in light blue — and has already turned that level into support. This is a key signal of potential trend continuation.

Still, a daily close and successful retest around ~$106,600 (black horizontal level) WOULD offer stronger confirmation for bulls. This level now represents an important pivot: reclaiming it could trigger a push toward ATH, while rejection might stall the rally or trigger another correction.

With momentum building and macro risks rising, Bitcoin stands at a pivotal crossroads. Whether it breaks out or pulls back, this next move could define the trend for weeks to come, not just for BTC, but for the entire crypto market.

BTC Weekly Chart Holds Firm, Approaching Key Resistance

Bitcoin continues to trade just below its all-time high, consolidating within a tight range between $103,600 and $109,300 as shown on the weekly chart. After a strong 50% rally from the April low, BTC is now pausing beneath the $112K record high, with bulls attempting to build momentum for a breakout. The price action remains constructive, with BTC holding well above key weekly moving averages — the 34-week EMA at $89,985 and the 50-week SMA at $82,452 — confirming strong underlying trend support.

The horizontal yellow zones at $103,600 and $109,300 now define the crucial breakout range. A clean weekly close above $109,300 could open the door for a push into price discovery. On the flip side, a break below $103,600 would weaken the bullish structure and signal that momentum is fading.

Volume remains consistent but hasn’t yet spiked, which suggests traders are waiting for confirmation before committing to the next directional move. Until then, Bitcoin remains in a holding pattern — but the proximity to ATH, the recent strength off support, and the clean technical structure all suggest that a breakout is more likely than a breakdown, especially if macro conditions don’t deteriorate further in the coming weeks.

Featured image from Dall-E, chart from TradingView