Bitcoin's price action continues to intrigue traders as it consolidates within an ascending channel on the 4-hour timeframe. The recent rejection from the channel's upper boundary at $108,000 indicates that bearish pressure might dominate the short term. Currently, BTC trades around $101,450, testing a critical support level near $102,000.
Key Observations:
Ascending Channel in Play: The structure highlights an upward trend, with BTC respecting both the upper and lower boundaries of the channel. The dotted midline has acted as a dynamic pivot, influencing price movement over recent weeks.
Bearish Breakdown Potential: A clear break below $102,000 could lead BTC toward the next significant horizontal support at $98,236. This level aligns closely with the channel's lower boundary, making it a crucial zone for bulls to defend.
Key Resistance Zone: If bulls manage to reclaim $103,000, BTC could retest the midline or even the $106,000 level. However, failure to sustain above the $102,000 support could accelerate a bearish trend.
RSI Divergence: Hidden bearish divergence on the RSI suggests weakening bullish momentum, supporting the case for a deeper correction.
Expected Scenarios:
A retest of $98,000 would provide an excellent opportunity for bullish accumulation within the channel structure.
If the price rebounds from the lower boundary, bulls may aim for $106,000-$108,000 in the medium term.
A confirmed breakdown below $98,000 might invalidate the channel, opening doors for further downside to $94,000.
Trade at your own Risk 👍
Best Regards, Trade Cryptocurrency
Stay Tuned for Further Updates.
