Bitcoin Eyes $106K as Analysts Weigh Bullish Breakout or Fakeout

  • Bitcoin maintains gains near $105,000 with key liquidity zones emerging around current prices.
  • Some analysts anticipate a potential move to new all-time highs, while others warn of a possible reversal.
  • Traders highlight the influence of recent US-China trade news and low weekend liquidity on Bitcoin’s volatility.

Bitcoin sustained significant gains through the weekly close on May 11, trading near multi-month highs close to $105,000. This surge was accompanied by increased trading activity and focused liquidity around current prices, as reported by Cointelegraph and TradingView data.

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A sharp weekend jump in Bitcoin‘s value was partly attributed to limited liquidity outside regular trading hours and renewed optimism about a potential US-China trade agreement. Market observers on social media pointed out positive comments regarding trade talks, along with supporting upticks in shipping data.

According to the trading resource CoinGlass, a large cluster of sell orders appeared just below $106,000, while buy orders spread down to $102,000. This created a dense band of liquidity surrounding the spot price as the market approached the weekly close. Technical analyst Rekt Capital stated via X that Bitcoin could be on the verge of entering a new phase of price discovery and uptrend if it holds above $104,500. In his words, “Bitcoin is on the cusp of beginning Price Discovery Uptrend 2.” He also shared that the bull market is now 85.5% complete, predicting quicker gains if parabolic trends continue.

Despite the upward momentum, not all traders are convinced that the rally will last. Market participant HTL-NL posted on X, suggesting this move could be a “fakeout”—a temporary breakout designed to trap traders expecting continued gains. “Will $BTC close/open the week remaining within the range, will it do a ‘fake out (UTAD)’ or was this really a reaccumulation range as many want to believe,” the trader noted, reflecting prevailing uncertainty.

Il Capo of Crypto, another widely followed trader, issued caution that the entire recent move could reverse if current resistances prove too strong. “This is the time to scale out, not in,” he said, warning that if the surge is only a short-term correction, the rebound may disappear entirely.

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The article does not provide direct investment recommendations. All information should be considered in the context of inherent risks in trading and investing in cryptocurrencies. For live charts and technical details, readers can refer to the original resources via the included hyperlinks.

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