Bitcoin Enters Critical Retesting Phase After Reclaiming Key Level – Is This the Calm Before the Storm?
Bitcoin bulls are holding their breath as BTC enters a decisive retesting phase following its reclaim of a crucial support level. The crypto king's next move could set the tone for the summer—and Wall Street's algo-traders are watching like hawks (between martini lunches, of course).
Breaking down the technicals
The $60K-$62K zone has transformed from resistance to support—a classic bullish reversal pattern. But with open interest creeping up and funding rates neutral, this isn't your typical 'buy the dip' scenario. The market's playing a high-stakes game of chicken.
Macro winds shifting
While traders obsess over chart patterns, the real storm might come from traditional markets. The Fed's balance sheet quietly expanded by $80B last month—just as Bitcoin broke through its 200-day MA. Coincidence? The crypto old guard would say there are no coincidences in markets, only patterns the suits haven't quantified yet.
What comes next?
Watch for either a violent squeeze past local highs or a fakeout that traps overleveraged longs. In crypto, the biggest moves always happen when retail least expects it—usually right after some VC declares 'the new paradigm' on CNBC.
Bitcoin Set For Key Support Confirmations
Bitcoin managed to close above two crucial levels over the past few days, recording its highest weekly close in history. Last week, the flagship crypto positioned itself for a reclaim of its final major weekly resistance around $109,000 after nearing this area for four days.
On Sunday, BTC surged above the key barrier and closed the week around the $109,200 mark, also successfully confirming its diagonal daily trendline as support. Now, the cryptocurrency is retesting the final resistance to confirm the breakout.
Rekt Capital affirmed that the goal is to turn this resistance into support, as it could push BTC to new all-time highs (ATH). He explained that “given how price barely Weekly Closed above the final Weekly resistance, it offers very little chance for price to cleanly retest this level into support; that is, this retest is likely going to be a volatile one.”
Nonetheless, the analyst noted that the cryptocurrency has significant High Timeframe (HTF) support beneath it that “should act as a demand area to springboard price into Price Discovery Uptrend 2 over time.”
Notably, Bitcoin reclaimed and held the high zone of its re-accumulation range, around the $104,400 mark, as support over the past two weeks. Meanwhile, June Monthly Closed above the $102,464 level and retested it post-breakout “to enable this current July upside candle,” setting it as a monthly support.
Additionally, the $107,244 level also emerged as a crucial area after last month’s close, driving BTC “back to its retesting phase.”
BTC To Breakout After The Summer?
Rekt Capital considers BTC’s current phase as “the calm before the storm,” adding that “for as long as the post-breakout retest will continue, bitcoin will continue to be positioned for its second Price Discovery Uptrend.” However, he pointed out that it is currently locked between $104,400 and $111,000 levels so far this month.
Daan Crypto Trader warned investors that the upcoming days could be crucial for BTC’s price action this month. He highlighted that Bitcoin has tended to set its monthly high or low within the first 12 days over 80% of the time, before price trends around 20% in the opposite direction.
Remarkably, June was an exception after Bitcoin remained relatively stable with only small moves in each direction. Now, the analyst thinks it’s time to be “on the lookout again for any big MOVE up or down within the first 12 days” to potentially determine BTC’s trend for the rest of the month.
“For now, there has been little action in July yet,” Daan stated, but added that “technically, we’re still looking perfectly” around the current levels. He asserted that, with the slower pace during the summer, BTC could remain within its current range until a real move up begins at the end of Q3 and start of Q4.
The trader concluded that the cryptocurrency must officially break out of its range before investors get excited for “much higher later this year.”
As of this writing, Bitcoin is trading at $107,973, a 1% decline in the daily timeframe.
