Key Takeaways
- Bitcoin (BTC) is retesting the critical resistance level near $108K, a decisive breakout could confirm bullish continuation
- Current price range between $108K-$97K will likely determine June's broader market trend
- Monthly RSI entering overbought territory historically signals the final, most aggressive phase of bull markets
- Analysts anticipate significant altcoin rotation and increased volatility if Bitcoin clears resistance
Bitcoin Price Faces Crucial Resistance Test
Bitcoin is currently trading around $107,527, showing resilience despite a minor 1.63% daily pullback. The cryptocurrency maintains a 2.47% weekly gain, demonstrating underlying buying pressure at current levels.
Technical analysis highlights $108,386 as the pivotal range high that could determine Bitcoin's next major move. According to prominent trader Daan Crypto Trades, sustained trading above this threshold would confirm bullish continuation.
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Key price levels to watch:
- Bullish Scenario: Breakout above $108,386 could propel BTC toward new highs
- Neutral Scenario: Consolidation between $108K-$99K range
- Bearish Scenario: Breakdown below $97,622 monthly low may signal short-term bearish reversal
Market conditions remain sensitive to macroeconomic news and geopolitical developments. Recent positive catalysts like favorable CPI data provided only temporary support, which some traders interpret as potential warning sign.
Bitcoin's Monthly RSI Signals Final Bull Phase
Market analyst Cas Abbé highlights that Bitcoin's monthly Relative Strength Index (RSI) has entered overbought territory. Historical patterns suggest this typically occurs during the final, most aggressive phase of bull markets characterized by:
- Accelerated price appreciation
- Increased volatility
- Strong altcoin outperformance
While overbought conditions often trigger caution, they historically precede Bitcoin's most dramatic upside moves. This phase typically sees capital rotation from Bitcoin into altcoins as investors seek higher-risk opportunities.
Market Outlook and Potential Scenarios
The current technical setup presents three potential outcomes for June:
Bullish Breakout:
- Confirmation above $108K resistance
- Potential rapid move toward $120K+
- Altcoin market capitalization surge
Range Continuation:
- Prolonged consolidation between $108K-$97K
- Reduced volatility
- Sector rotation within crypto markets
Bearish Rejection:
- Failure to hold $97K support
- Possible retest of $89K range low
- Temporary risk-off sentiment
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Frequently Asked Questions
Q: How reliable is the monthly RSI as a Bitcoin market indicator?
A: While no indicator is perfect, Bitcoin's monthly RSI has historically been accurate in identifying late-stage bull market conditions, particularly when combined with other technical and fundamental factors.
Q: What altcoins typically perform best during Bitcoin's late bull phase?
A: Historically, mid-cap altcoins with strong fundamentals and active development communities tend to outperform during this phase, though exact performance varies each cycle.
Q: How long does Bitcoin's final bull phase typically last?
A: Historical patterns suggest this phase can last anywhere from 2-6 months, often characterized by extreme volatility and rapid price movements in both directions.
Q: What are the key support levels if Bitcoin fails to break $108K?
A: Critical support levels to watch would be $99,638 (mid-range) and $97,622 (monthly low), with $89,250 representing major support if bearish momentum accelerates.
Q: How should traders adjust their strategies during this market phase?
A: Experienced traders often implement more conservative position sizing, tighter risk management, and increased focus on technical levels during this high-volatility phase.
Conclusion
The coming weeks present a critical juncture for Bitcoin and the broader cryptocurrency market. The $108K resistance level serves as the key technical threshold that could determine market direction through mid-2025. With Bitcoin's monthly RSI entering historically significant territory, traders should prepare for potential heightened volatility and possible altcoin outperformance.
Market participants would be wise to monitor both technical levels and fundamental developments closely, as the convergence of these factors often creates the most significant trading opportunities. Regardless of short-term price action, the current market structure suggests we may be entering the most dynamic phase of this market cycle.