Bitcoin Faces Pivotal Test at Key Resistance Level

Bitcoin is approaching a critical juncture as it tests a descending trendline that has acted as resistance for the past two months. This is the third time BTC is attempting to break above this trendline, and with recent momentum building, this try might be the decisive one.

Currently trading above both the 26-day and 50-day EMAs, Bitcoin has also bounced strongly off the 100 EMA, reinforcing the bullish structure. However, despite this technical strength, one key element remains missing—volume. The lack of significant follow-through buying raises questions about the sustainability of this breakout attempt.

Momentum indicators like the Relative Strength Index (RSI) have flipped back into bullish territory but remain well below overbought levels, suggesting that BTC still has room to run. If the price convincingly breaks through $108,000, it could trigger a surge toward all-time highs. Still, without a spike in volume to confirm the breakout, the risk of a bull trap remains high.

A failed breakout could quickly push Bitcoin back below the $105,000 level, wiping out recent gains and discouraging short-term buyers. Traders and investors are now watching closely for signs of a decisive move, particularly whether volume can support this price action.

In summary, Bitcoin’s third retest of its descending resistance trendline could be the breakout moment bulls have been waiting for. But without strong volume, the rally may lose steam. A successful close above $108,000 on rising volume could confirm a breakout and set the stage for a renewed push toward record highs. Until then, caution is warranted.