Bitcoin’s $104K Floor: Will It Spark a Surge to $130K or Trigger a Major Pullback?

Bitcoin’s recent price movement has come under close observation as it rebounds from a significant support zone, with experts stressing the necessity of holding crucial levels to keep the bullish trend alive. The digital asset jumped from $98,000 to above $107,000 in just one day, fueled by a ceasefire in the Middle East and ongoing depreciation of the dollar Bitcoin Recovers from $98k to $107k: Key Support and Resistance Levels [ 1 ]. This upward move has ignited discussions about whether the market is preparing for another surge or if a breakdown of support could trigger a correction.

From a technical standpoint, $104,705 is identified as the first major support. Should Bitcoin fall below this point, it could set off a decline toward $101,060 and possibly $98,162—levels that have previously served as psychological thresholds for market participants Bitcoin Recovers from $98k to $107k: Key Support and Resistance Levels [ 1 ]. On the resistance side, $107,742 and $110,629 are seen as critical. Surpassing these could confirm a broader bullish pattern, especially in light of the Federal Reserve’s dovish tone and institutional

ETF investments, which have brought in $4.63 billion since June 9 Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ].

Investor actions further highlight the market’s delicate state. According to Glassnode, Bitcoin holders are currently sitting on $1.2 trillion in unrealized profits, averaging a 125% gain. Despite these profits, selling has slowed, with most investors choosing to hold rather than sell Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ]. This holding behavior is supported by robust support at $98,300, which is the average entry price for short-term investors. Still, analysts warn that continued selling by long-term holders—ongoing since spot ETF launches in January—continues to weigh on momentum Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ].

Broader economic trends remain influential. The probability of a Federal Reserve rate cut in July has risen to 23%, according to the CME FedWatch Tool, boosting risk appetite Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ]. Regulatory developments, such as the Fed’s move to stop factoring “reputational risk” into crypto banking reviews, have also encouraged more institutional involvement Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ]. These factors coincide with Bitcoin’s tight trading range near recent highs, and some analysts believe a breakout to $130,000 is possible if volume and technical patterns persist Bitcoin Price Prediction: BTC Reclaims $107K After 5-Jump Key Levels Point to $110K Breakout [ 3 ].

Despite the positive outlook, some caution remains. Bitfinex analysts point out that Bitcoin’s climb from $73,000 to $107,000 has lost steam, partly due to waning momentum and profit-taking by those who bought below $80,000 Bitcoin Investors Hold Tight as BTC Finds Strong Support at $98K [ 2 ]. They suggest that the next significant move will be shaped by macroeconomic events, including Federal Reserve actions and institutional interest. Meanwhile, the Altcoin Season Index has dropped to 69 from a high of 100, indicating that capital is shifting back to Bitcoin, while

is losing ground as smaller altcoins come under speculative pressure.

To sum up, Bitcoin’s short-term direction depends on its ability to maintain key support levels. A decisive drop below $104,705 could lead to a deeper pullback, while holding above this mark may set the stage for further consolidation or renewed upward movement. Experts recommend that traders keep a close eye on these technical levels and macroeconomic indicators, as the interplay between chart patterns and overall market sentiment will likely determine Bitcoin’s trajectory in the near future.