Bitcoin may be in the midst of a ”profit-making move” at the $106,000 line before hitting its all-time high

As expectations grow that Bitcoin will reach a new all-time high, some analysts have suggested that the $106,000 level will act as a resistance level before the all-time high is broken.
On the 12th (local time), the possibility of potential profit realization increases for Bitcoin at the $106,000 line, a key juncture before it reaches a new all-time high.
Bitcoin price broke out of the lower part of the ascending channel pattern, showing signs of a bearish breakout.
After hitting a record high of $105,800, it fell 3% to $101,400 during New York trading hours. On the short-term chart, it has been fluctuating between ups and downs in an ascending channel.
As Bitcoin’s upward momentum slows, on-chain data analytics platform Alpharactal has predicted that BTC will reach 106,000.
The dollar has retested resistance levels, increasing the chances of profit realization.
Wedson said, "Bitcoin is currently approaching the 'alpha price' zone, where it will likely remain for a long time."
"There is a possibility that long-term holders and whale investors will realize profits," he said. In terms of liquidation, the risk of liquidation of long Bitcoin positions is also increasing. Prices have fallen to $100,000.
If the price were to drop, approximately $3.4 billion in leveraged long positions would be at risk of liquidation, and this section would act as a psychological support line, acting as a magnet to pull prices higher.
The Bitcoin price correction is being interpreted as a move by traders to reduce risk ahead of the release of the U.S. Consumer Price Index (CPI).
The March CPI recorded 2.4%, below expectations of 2.5%, and down from 2.8% in February. The April CPI is expected to remain at the 2.4% level due to stable oil prices and slowing wage growth.
If the CPI reading falls short of market expectations for a third consecutive month, this could raise expectations of a Federal Reserve interest rate cut and boost risk assets like Bitcoin.
On the other hand, a higher than expected reading could spur inflation fears and trigger a stronger dollar, which could have a negative impact on Bitcoin.
If the bearish pressure for Bitcoin continues on the chart after the CPI announcement, the area to watch in the short term is the 4-hour fair value glyph.
A FVG is expected to form between $100,500 and $99,700. If it falls further, another FVG could form between $98,680 and $97,363.
G, which represents a correction of about 8% from the recent high. This section continues to be the main test bed for future price movements.