Bitcoin’s critical levels to monitor as sellers take control – Daily market analysis

Traders are keeping a close eye on key levels in the Bitcoin market as sellers dominate the scene. Bitcoin saw a rally over the weekend, pushing past the $104,800 mark, but it’s important to note that the surge was largely driven by retail traders. The influence of whales, which are large traders and institutions, tends to be more significant during the week, with weekends typically lacking strong conviction in price movements.

While the recent uptick in Bitcoin closing above $104,800 may seem promising, sellers are still in control, making it crucial for traders to approach the current market dynamics with caution. Additionally, monitoring Tether dominance, specifically USDT.D, can provide valuable insights as it often moves inversely to Bitcoin and Ethereum. Keeping a close watch on the key level of 4.37% on USDT.D is essential, given its role as resistance throughout May. A sustained break above this level could potentially signal a shift to support.

As the market closed near 4.37% on Sunday, there is a possibility of an intraday wick down to 4.66% to address an imbalance from May 29th. This correction could lead to a retest of the $106,600 resistance level for Bitcoin. Maintaining a price above $104,800 by the end of the day will help sustain the range between $104,800 and $106,600. A retest of $106,600, especially to fill the imbalance at $106,800 from May 28th, is crucial. However, any significant weakness at this level could trigger a downturn for BTC.

Despite short-term fluctuations, the focus remains on the $100,000 region as a potential target in June. The area offers significant liquidity and could become a prime level of interest if the $106,600 resistance holds up. Moreover, Bitcoin has an imbalance at $97,700 from a rally on May 8th, indicating a potential area to watch for price action.

A sustained break above $106,800 on high time frames this week could signal a bullish trend for Bitcoin, providing traders with valuable insights for their trading strategies. Overall, staying informed about key levels and closely monitoring price movements are essential in navigating the current market conditions and making informed decisions.