Bitcoin price upside potential builds as long-term RSI supports bullish continuation

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Bitcoin price upside potential builds

Highlights

-Bitcoin faces critical resistance near $110,300 after recent all-time high pullback-Consolidation range between $106,800 and $110,300 shapes short-term market direction-Long-term holders increased accumulation during dips supports bullish outlook

Following the sharp retracement, Bitcoin's price has displayed clear consolidation behavior, establishing a defined range between a base of $106,800 and a ceiling around $110,300. This range-bound price action since the weekend highlights market uncertainty, as traders evaluate the strength of Bitcoin's recent rally and its potential to reclaim and surpass previous highs.

BTC price dynamics (Nov 2024 - May 2025). Source: TradingView

Today's price action has been particularly volatile, demonstrating erratic intraday swings within the established consolidation boundaries. Notably, the intraday fluctuations were supported by technical indicators, especially the 50-period exponential moving average (EMA) on the 4-hour chart, which cushioned downward pressures effectively. The presence of the 100-period EMA slightly below the consolidation's base at $105,700 provides an additional layer of technical support, suggesting that any immediate breakout attempt below current consolidation levels might encounter resistance from bullish market participants.

Bitcoin accumulation by holders during dip may tighten supply path

At the European trading session today, Bitcoin is priced near $109,000, indicating proximity to the upper range boundary, yet still unable to decisively break through. The consolidation phase represents a critical juncture for Bitcoin's next price movement. A convincing breakout above the supply zone ceiling at $110,300 could trigger renewed bullish momentum, potentially setting sights on a projected bullish target of $120,000.

Despite recent fluctuations, sentiment metrics such as the 4-hour Relative Strength Index (RSI) support a generally optimistic outlook. Though it has declined slightly, the RSI remains above neutral levels, suggesting sustained bullish sentiment. The longer-term 100-period RSI also maintains its bullish positioning, further endorsing the possibility of upward price progression.

From a fundamental perspective, recent price dips appear to have stimulated interest among long-term Bitcoin holders. Historical patterns have demonstrated that increased accumulation by these investors during periods of market volatility often precedes notable price expansions. This strategic buying reduces coin circulation, subsequently diminishing selling pressures and reinforcing positive market dynamics.

Overall, Bitcoin's immediate future hinges significantly on breaking above the current consolidation range. Achieving this could pave the way for fresh highs, while failure to breach the supply zone might trigger a pullback towards the 100-period EMA support at $105,700.

Bitcoin fell 4% over the weekend after forming a bearish engulfing candle at the $112,000 supply zone. RSI was overbought as price retested the zone before bouncing to $110,000.

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