Will Bitcoin Price Break Above $106K or Face a Major Pullback?

Bitcoin is testing a key resistance at $106K while trading around $105,450. A drop below $104.2K could signal a pullback, but an upward movement past $106K may lead to new highs. The June 18 Fed meeting is crucial, with a possibility of impacting Bitcoin’s price, especially if rates are held steady. Institutional investments are growing, providing a bullish sentiment amid potential market volatility.

In the latest market happenings, Bitcoin is hovering around $106,000, regarded as a critical resistance level. The cryptocurrency has stabilized near $105,453 as it tests this crucial threshold. Traders are currently filled with a mix of caution and curiosity. Recent weeks have seen Bitcoin experiencing significant price swings and momentum fuelled by substantial capital inflows into Bitcoin ETFs as well as notable institutional investments, notably from firms like BlackRock, which have stirred up volatility in this sector.

Market analysts are watching closely as Bitcoin tries to break through the stiff $106K barrier, a drop below $104.2K could signal more trouble ahead. There’s a lot at stake here; maintaining above this point is crucial for any bullish continuation. If Bitcoin can push past the $106K mark, it could potentially climb to new record highs. However, a decline below $103.4K might pose a risk of a sharp pullback, with Bitcoin possibly sinking under the $100K mark.

The upcoming Federal Reserve meeting on June 18, 2025, hangs over the market like a sword of Damocles. There’s currently a staggering 95.3% probability that the Fed won’t adjust interest rates—what that means for Bitcoin remains uncertain. If they choose to keep rates steady, we might see ongoing economic uncertainty, which tends to decrease appetite for riskier investments like Bitcoin. This could force Bitcoin to drop significantly, potentially facing a 20% decrease if investors start pulling away.

In stark contrast, a surprise rate cut could invigorate Bitcoin’s value; lower rates could entice more investment in riskier assets. Still, the overall sentiment seems geared toward a possible short-term decline as the Fed meeting approaches.

Interestingly, despite these economic clouds, there’s been a noticeable influx of institutional money into Bitcoin recently. On June 3, 2025, Bitcoin Spot ETFs saw a whopping inflow of $375.1 million, signalling robust investor interest. Major players like BlackRock have reportedly acquired $58 million in Bitcoin, while Fidelity and ARK Invest pooled an impressive $275 million into the cryptocurrency. This kind of institutional backing could hold Bitcoin’s price steady amidst any forthcoming volatility.

Bitcoin’s current figures indicate it stands at about $105,453, perched near the upper Bollinger Bands. The RSI level is 59.82, below the overbought threshold of 70, suggesting there might still be room for upward movement before the market gets too high. However, it’s worth noting the MACD line is sitting below the signal line, hinting at a slowdown in bullish momentum. Keeping an eye on this could help traders navigate potential reversals. Meanwhile, despite low total volume, stronger buying trends are showing up in the CVD, indicating that should trends hold, Bitcoin’s price might soon hit resistance at the upper Bollinger Band close to $106,716.