- Bitcoin continues its rally, testing key resistance around $104,500-$106,000, with potential for a breakout into new all-time highs.
- Analysts like Rekt Capital suggest Bitcoin is nearing a significant price discovery phase, but some remain cautious, warning of a possible “fake-out” or reaccumulation pattern.
- On-chain data shows strong liquidity support and resistance around key levels, indicating a potential breakout or rejection.
Bitcoin maintained its impressive rally heading into the weekly close on May 11, with analysts closely watching a critical resistance level that could shape the next phase of the bull cycle.
According to data from TradingView, weekend trading saw heightened volatility, propelling Bitcoin to fresh multi-month highs near the $105,000 mark. This sharp upside came amid thin liquidity typical of weekend sessions, a time often prone to exaggerated price moves. Market speculation again pointed to optimism surrounding a potential U.S.-China trade agreement as the catalyst behind the surge.
Amid the bullish momentum, well-known crypto trader and analyst Rekt Capital shared an optimistic outlook, suggesting that Bitcoin may be on the verge of a major breakout, one that could usher in a return to price discovery and potentially new all-time highs.
“The key level to flip into support lies at around $104,500,” Rekt Capital stated. Highlighting this on X (formerly Twitter), he posed the critical question:
“Can Bitcoin do it? Can Bitcoin Weekly Close above the Range High of its recently reclaimed Re-Accumulation Range to kickstart the breakout process?”
He accompanied the post with a detailed chart, suggesting Bitcoin may be “on the cusp of beginning Price Discovery Uptrend 2.”
Further analysis from Rekt Capital estimated that the ongoing bull market is already 85.5% complete, yet warned that the most volatile and dramatic upward swings are likely still ahead, a pattern often seen in the final stages of crypto bull runs.
Bitcoin Liquidity Map Signals Imminent Move
On-chain data from analytics platform CoinGlass supported the current technical setup, revealing a heavy concentration of sell orders (asks) just below $106,000. Meanwhile, buyer support (bids) was laddered down to $102,000, forming a thick band of liquidity surrounding the spot price, a setup often seen before decisive breakouts or rejections.
Despite the bullish narrative, skepticism remains among traders. Some continue to view the recent surge with caution, seeing it as a possible trap for overly enthusiastic long positions.
Popular trader HTL-NL, writing on X, questioned the sustainability of the move: “Will $BTC close/open the week remaining within the range? Will it do a ‘fake out (UTAD),’ or was this a reaccumulation range, as many want to believe?”
He leaned toward more conservative interpretations, citing macro and quarterly chart structures that suggest either a return to range or a final upward trap. However, he did concede that a true reaccumulation pattern, a bullish continuation, isn’t entirely off the table.
Bitcoin Rally Faces Strong Resistance Ahead
Adding to the cautionary chorus, the pseudonymous and often-contrarian analyst Il Capo of Crypto issued a stark warning in his May 10 update.
“This is the time to scale out, not in,” he advised, arguing that strong resistance levels are currently being tested. He suggested that if the current move is merely a corrective rally within a broader downtrend that began in January, the entire recovery could unravel, potentially erasing recent gains.
Il Capo of Crypto has been a polarizing figure in the trading community, known for his contrarian call of a $12,000 BTC bottom at the beginning of the 2023 bull market. While that prediction never materialized, his warnings continue to resonate with more risk-averse market participants.
As Bitcoin hovers near crucial technical levels, the crypto market remains split: will this weekend’s strength cement a breakout and trigger the next leg up, or are traders walking into another carefully laid bull trap?
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