The Bitcoin currently trades in a descending triangle with the resistance of the boundary at 106,099 and support at 102,624.
Compression of price action between the 21-day MA (resistance) and the 50-day MA (support) narrows the trade range.
A breakout or breakdown of the recently formed triangle will probably dictate the broader directional signature in Bitcoin.
Bitcoin is now trending in a falling triangle pattern on the technical day chart, with significant price compression between significant technical levels. As of writing, BTC is trading at $103,361.89, with a minute intraday increase of 0.06%. The intraday price range in the last 24 hours reaches as low as $103,127.48 and as high as $103,691.67. Nonetheless, the overall pattern continues to be compressed by established support and resistance boundaries.
Price Squeezed Between Support and Moving Averages
Notably, the price is positioned just above the horizontal support zone, around the $102,000–$103,000 region. This zone has repeatedly acted as a demand area on previous occasions. Meanwhile, the 21-day moving average is currently hovering above the price and acting as immediate resistance.
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Meanwhile, on the other hand, the 50-day moving average is positioned right under it, adding to the current support. The narrowing distance between these moving averages further compresses the price action.
Descending Trendline Maintains Pressure on Upside
The descending resistance trendline from May continues to weigh on upward momentum. Bitcoin has repeatedly faced rejection at this line, with each attempt failing to secure higher ground. The existing resistance is within the vicinity of $106,099. Any breakout higher would have to be followed by a decisive day-to-day close beyond this price to establish a renewed aggressiveness by buyers. Until then, the structure remains intact within a lower-high pattern.
Directional Move Awaits Breakout Confirmation
With the descending triangle gradually tightening, market participants are watching for a breakout or breakdown to confirm the next move. The lower support boundary near $102,624 remains intact for now. However, further price rejection at the resistance may prompt another retest of this level. A move below could indicate increased bearish strength, while a clean breakout may open the way for retesting upper resistance zones.
