Bitcoin rebounds from $100,000 – a healthy callback or a deeper correction?
Bitcoin (BTC) fell below $101,000 on Thursday as the influence between U.S. President Donald Trump and Elon Musk, the world’s wealthiest man. But over the past 48 hours, Virgo’s cryptocurrency has climbed above $105,000 before sweeping the sideways. Amid these developments, popular crypto analyst Killaxbt, who owns X pseudony, outlines a variety of options for Bitcoin’s next price action.
Behind Bitcoin’s rebound
exist X Posts On June 7, KillaxBT conducted an in-depth technical analysis of the Bitcoin market, discussing the recent price rebound and potential developments. After reaching a new history of the last $112,000 on May 22, BTC entered a correction phase, estimated to be down 10% to the $100,000 price range, before it rebounded in close range over the past two days.
Killaxbt explained that this rebound is not random and is driven by a combination of technology and market factors. These factors include daily FVG and quantity imbalances, which are the inefficiency of price left on the chart.
Additionally, liquidity swept past previous weekly lows as Bitcoin’s steady decline pushed the price higher, triggering many stop losses at longer positions. This development brings liquidity to large players, which is the fuel to drive market rebound.
Finally, Killaxbt made a brief squeeze setup, and the Bitcoin market became heavy after traders expected $100,000 after the initial price rebound. When prices started to rise, these short traders had to buy back to make up for the losses, adding more fuel to the rally.
What’s next for BTC?
Looking ahead, KillaxBT highlights three potential situations for BTC. Currently, analysts noted that the Prime Minister’s cryptocurrency is retesting a resistance zone between $104,800-$106,000, which coincides with the 0.5-0.618 fibonacci retracement level of the recent price decline.
In the first case, Killaxbt foresees a bullish continuation only if Bitcoin breaks and occupies that resistance area. Such a move could capture short sellers again, potentially fueling further upward momentum.
However, if Bitcoin faces rejection in that specified resistance area, the second scenario will work, where the price may drop and retest the support level of $100,000. The third, final and worst-case scenario includes a drop in the price of leading bitcoins below $100,000 to regain the support zone of the $97,000 price zone.
Interestingly, Killaxbt’s personal forecast expects market makers to continue to raise the price of Bitcoin, which takes advantage of the recent sharp rebound that has caught many short traders off guard. With no clear “safe” long-term entry, analysts suggest further selling prices will capture more short sellers while forcing absent bulls to chase rally
At press time, BTC continued to trade for $105,600, reflecting a 1.16% increase over the past day.
Featured images from Istock, charts for TradingView
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