Bitcoin’s $104K Barrier Remains Strong, Can Bulls Break Through?

• Bitcoin consolidates near $96K, with traders eyeing CPI data for potential breakout or downside risk.
• Strong resistance at $104K challenges bullish momentum; failure to break could extend consolidation.
• Key support at $89.5K-$91.5K holds firm, while lower levels at $85K and $79K may come into play if selling pressure intensifies.

Bitcoin is beneath consolidation trading at nearly $95982 against the Tether (USDT) on KuCoin. The daily high for this cryptocurrency was $96261, and the low was $95103.4. An adverse CPI report would mean Bitcoin’s support zones are under pressure, while a lower figure would trigger a positive breakout.

Crucial Resistance at $104K Holds Strong

Bitcoin faces a resistance level at $104,087.7, where sellers have historically been active. This level has been tested multiple times, yet Bitcoin struggles to break through. If bullish momentum strengthens, surpassing this resistance could open doors for further gains. 

Moreover, breaking above this zone may signal a shift towards a more bullish market structure. However, failure to clear this level could lead to a continuation of the current consolidation phase. Investors remain cautious as they assess macroeconomic factors and liquidity inflows.

Key Support Zones and Market Outlook

On the downside, Bitcoin holds an ideal entry zone between $89,584.4 and $91,552.0. Buyers have defended this range on multiple occasions, reinforcing its significance. If Bitcoin dips further, $85,327.6 serves as another crucial support level.

In the event of a broader correction, the cryptocurrency could test lower support areas at $79,743.0, $71,736.8, and $64,789.5. The long-term “Area to Hold” sits between $59,735.4 and $57,688.0, indicating a major accumulation zone.

Volume and Market Activity

Trading activity has accompanied Bitcoin’s price movements, as seen in the volume bars. Higher volume levels suggest strong participation from traders. Additionally, the Relative Strength Index (RSI) remains neutral, implying no immediate overbought or oversold conditions.

Renowned analyst Michaël van de Poppe commented on Bitcoin’s price action, noting that CPI data could dictate the next move. Lower inflation figures could drive bond yields down, leading to an upward move in Bitcoin. However, if inflation remains sticky, Bitcoin may struggle to gain momentum.