Bitcoin Approaching Crucial Support Zone, Bullish Retest in Play

Bitcoin has embarked on a correction, nearing the lower boundary of its rising wedge pattern, with key levels around $105,700 to $106,500. Currently, it seems to be retesting bullish support, favoring long positions. The area above the May 27th peak at $110,700 presents a high-liquidity zone, serving as a near-term target for bullish traders, with expectations of further upward movement if this resistance is breached. Should Bitcoin decline further, the critical support zone between $103,950 and $105,900 acts as a daily trend breaker. Losing this support would invalidate the wedge pattern, leading to a range-bound market, though it would not rule out making new all-time highs later. The fundamental levels to watch are above $108,367 and below $106,775, with liquidity heatmaps indicating significant activity around $108,727 for bullish entries and $106,640 for bearish ones. The overall trend shows a daily to weekly upward momentum, but market sentiment is somewhat mixed, with a score of 71 out of 100, indicating cautious optimism. The technical and on-chain signals suggest maintaining a close watch on the designated support and resistance levels for strategic trading decisions.