Although the price has gone down recently, Bitcoin is still holding above a key 4-hour trendline, showing ongoing bullish strength.
For direction signals, traders are monitoring the supports at $107,156 and resistances at $111,253.
The current rounded trading pattern hints that the price may break out soon and directions taken in the days ahead will likely influence the near future.
Despite fluctuations in its price, Bitcoin is still above a key trendline on the 4-hour chart which suggests the bullish trend is still ongoing. Over the past day, the asset has dropped in price by about 2.3% to reach $107,070. Still, the technical analysis points out that the bullish pattern is present as long as Bitcoin stays above the support level.
Stability Above Trendline Offers Market Reassurance
For the past several weeks, Bitcoin’s price has been rising steadily, giving it support as the market experiences ups and downs. This support level has recently been put to the test, as the price approached $107,356. Maintaining this level could reinforce buyer confidence and prevent deeper corrections.
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For the moment, the price action suggests the bulls are still in control. A breakdown below the trendline, however, could invite renewed selling pressure and prompt a shift in short-term sentiment.
Resistance Zone Nears as Market Consolidates
If the trend continues, Bitcoin may encounter a resistance barrier set at $111,253. Previous attempts to break above this range have faced selling pressure, suggesting it remains a strong barrier. To move up again, Bitcoin will probably have to overcome this current resistance.
Traders are now carefully waiting for the price to break out, as it is consolidating in a narrow range. Uncertainty often leads to such actions which are common right before major changes in the market.
Market Outlook Hinges on Next Price Reaction
Analysts are assessing if Bitcoin will still move within the designated trendline. If the support is achieved again, there could be another trip to resistance which may lead to a new start for the rally. Conversely, failure to hold the trendline could result in further declines, with lower support zones possibly coming into play.
During this period, the bigger trend is continuing in an uptrend on the 4-hour chart. However, the recent stop in growth has made Bitcoin vulnerable, as any shift in the markets or external pressures could force investors to act in unexpected ways. The upcoming sessions might decide where the leading cryptocurrency will go in the near future.
