Bitcoin is approaching a crucial support level inside of a descending channel which may present a bounce.
A break above $118K resistance may trigger strong bullish momentum and shift market sentiment.
The absence of support to maintain would result in additional loss of levels, extending the period of channel consolidation.
Bitcoin (BTC) is approaching a critical technical level as it nears the lower boundary of a descending parallel channel. The setup now points to a possible bullish bounce, with traders closely watching the $118K resistance for confirmation.
BTC Stays Within Channel Structure as Market Awaits Direction
Bitcoin resumes its adherence to a well-established descending channel, characterized by repeated lower highs and lower lows. Its price action shows consolidation because BTC is stuck between two parallel trendlines that have been in place over weeks.
The subsequent plunge has carried the price of Bitcoin to the lower end of this channel at around $113,000. Historically, this level has been a take off point with prices rising in the future, in line with the validity of the pattern. The crypto market is currently fixed on the indication of bullish response.
Bulls Eye $118K Resistance for Confirmation of Momentum Shift
Captain Faibik's chart suggests a bounce from current levels is likely. If momentum builds, BTC could retest the upper resistance near $118,000. This area is critical—serving both as psychological resistance and technical ceiling.
A confirmed breakout above this zone would indicate buyer dominance, likely attracting more liquidity and propelling BTC toward fresh highs. This scenario aligns with previous rebounds within the channel, where each touch of the lower trendline led to notable upside.
Risk of Breakdown Lingers if Support Fails to Hold
While optimism builds, failure to hold the channel's lower boundary could trigger further downside. A breakdown would neutralize the pattern leaving the next support to observe at the levels of $111,000 and then at 108, 000.
The BTC price is at the level of $113,793 as of writing, which means a -0.96% decrease in the last 24 hours and a -3.07% change in the last seven days. The volume is high at above 55 billion which is a sign of high participation in the market.
The coming days will likely prove pivotal. Traders should monitor price action near the channel's edges for clues on Bitcoin’s next move.
