In today’s analysis, we examine Bitcoin’s price action as it continues to respect a descending channel pattern. With current price consolidating at the upper boundary of this channel, traders are now questioning whether BTC will break out or reject and rotate lower.
Key Points Covered in This Article:
- Bitcoin is currently consolidating at resistance of the descending channel
- A break of the recent swing low could lead to a drop to $67,400 support
- Confirmation of bullish breakout requires volume-backed move above channel resistance
Bitcoin is currently pressing into the top boundary of a descending channel, where resistance is holding firm. On the lower time frame, price action has entered a period of consolidation — a key sign of indecision. However, from a structural point of view, resistance remains resistance until broken. A failure to break through the upper boundary could accelerate downside momentum.
Should the current swing low be breached, traders can expect a move toward the lower boundary of this descending channel, situated around $67,400. This level will act as the next significant support, and it may provide a potential entry for reversal plays, depending on how price behaves upon reaching it.
For bullish continuation to occur, Bitcoin must decisively break above the descending channel with strong volume confirmation. Without this signal, any moves to the upside may be short-lived and potentially lead to liquidity grabs before another rotation lower. Traders should stay patient and wait for either a clear breakout or confirmation of further downside before entering positions.
Key Points Covered in This Article:
- Bitcoin is currently consolidating at resistance of the descending channel
- A break of the recent swing low could lead to a drop to $67,400 support
- Confirmation of bullish breakout requires volume-backed move above channel resistance
Bitcoin is currently pressing into the top boundary of a descending channel, where resistance is holding firm. On the lower time frame, price action has entered a period of consolidation — a key sign of indecision. However, from a structural point of view, resistance remains resistance until broken. A failure to break through the upper boundary could accelerate downside momentum.
Should the current swing low be breached, traders can expect a move toward the lower boundary of this descending channel, situated around $67,400. This level will act as the next significant support, and it may provide a potential entry for reversal plays, depending on how price behaves upon reaching it.
For bullish continuation to occur, Bitcoin must decisively break above the descending channel with strong volume confirmation. Without this signal, any moves to the upside may be short-lived and potentially lead to liquidity grabs before another rotation lower. Traders should stay patient and wait for either a clear breakout or confirmation of further downside before entering positions.
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Disclaimer
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Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.