Bitcoin is currently trading just above $107,000, having recently approached highs near $108,000, and is now consolidating below this resistance level.

Despite recent consolidation, technical analysis indicates a sustained bullish momentum for Bitcoin, with higher lows and a 'golden cross' in the MACD indicator suggesting strong buying signals.

Since early May, Bitcoin has gained over 15%, reflecting a bullish trend that began after rebounding sharply from the $75,000 level, showcasing its dominance amid struggles in the altcoin market.

Analyst Daan points out a strong resistance zone for Bitcoin around $109,000 to $112,000, where multiple breakout attempts have failed over the past month.

For a confirmed breakout, Bitcoin needs to close above $110,000 with strong weekly or consecutive daily closes, rather than just a brief price spike.

If Bitcoin fails to break out, it risks experiencing downside volatility, particularly if it cannot maintain support at the lower boundary of the wedge.

The unpredictable nature of the crypto market is highlighted by Wynn's shift from a short position to buying 60 bitcoins, especially during weekends with lower liquidity.

Notorious trader James Wynn's recent actions, including a liquidated short position of nearly $14 million, have contributed to increased market volatility.

The recent surge in Bitcoin's price was influenced by easing geopolitical tensions, which had previously depressed its value, along with a rise in short liquidation levels.

Volume remains low, suggesting that traders are waiting for confirmation before making new commitments, which keeps the price range intact until a breakout is confirmed.

Although a temporary pullback to levels around $105,650 could occur, it is expected to maintain the overall bullish structure.

Resistance is anticipated at the $110,000 level; failure to break this barrier may lead to a downward trend, referred to as Wave C.