Bitcoin Pulls Back After $111K Breakout - Rebound or Start of Correction?

After yesterday’s powerful breakout through multiple moving averages and a run into the $111K zone, Bitcoin is taking a breather. Price is now consolidating near a short-term demand area, where sellers are starting to lose momentum and buyers are cautiously stepping back in.

The first bounce attempts are visible on lower timeframes, hinting that this could be a controlled pullback, not a full reversal. When momentum cools after a breakout, these pauses often set the tone for the next move.

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The Setup

After reclaiming all key short-term moving averages earlier in the week, BTC briefly overextended into the $111K resistance band before fading slightly.

Now, price is hovering between $107K–$109K, holding above local structure. The recent breakout above the descending trendline confirms that buyers have regained near-term control, though they’re still testing conviction.

A sustained hold in this zone could form the base for another upside attempt.

Key Levels to Watch

Immediate Resistance:

• $109,500 → reclaiming this pivot confirms short-term strength.

• $111,700 → first major upside target and profit-taking zone.

• $114,400 → breakout extension level if momentum expands again.

Immediate Support:

• $107,300 → key intraday level holding the current pullback.

• $106,150 and $103,550 → deeper demand layers if sellers press advantage.

Scenarios to Track 🔍

🟢 Bullish Path

A sustained move above $109,500 would confirm momentum rotation back to the upside. That move could target $111,700 first, with potential for a breakout extension toward $114,400.

The trigger to watch is clean hourly candle closes above $109,500 with volume confirmation.

🔴 Bearish Path

Failure to hold $107,300 would signal that the pullback is deepening, potentially dragging BTC toward $106,150 and $103,550.

Those zones align with prior liquidity clusters and would be the next areas for buyers to attempt re-entry.

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Market Psychology

This is where traders often misread structure. After strong breakouts, the market needs to breathe - quick dips and consolidations are normal. Impulsive traders treat them as reversals; experienced ones view them as setups.

The goal here isn’t to predict direction but to recognize where momentum flips. Once either $109,500 or $107,300 breaks decisively, the market will reveal its next leg.

Trading Lesson

Every rally needs a cooldown phase. That’s how liquidity resets and new participants enter. Watching how price reacts to pullback levels gives better insight than reacting to headlines or emotions.

If you’ve studied Chapter 5: Breakouts and Retests, this is your real-time example - structure, retrace, and reaction.

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Disclaimer: This is not financial advice. All information is for simulation and educational purposes only.