From the image, here are key observations regarding Bitcoin’s market trend:
1. Descending Trend and Breakout Attempt:
• The chart shows an initial strong downtrend, followed by a consolidation phase.
• There was an attempt to break out of the descending structure, forming a symmetrical triangle.
2. Symmetrical Triangle Formation:
• The price action formed a symmetrical triangle with lower highs and higher lows, indicating a compression in volatility.
• The breakout from this triangle appears to have led to further bearish movement.
3. Key Support and Resistance Levels:
• Support Levels: Around $76,000–$80,000, which has shown some reaction.
• Resistance Levels: The $90,000–$95,000 zone is a major resistance area, previously acting as support.
4. Current Market Structure:
• The price has rebounded slightly after a significant drop.
• The price is currently testing a resistance level around $83,000.
• If the price gets rejected here, another downward movement could follow.
• If BTC reclaims the $85,000 level, a potential retest of higher resistance levels near $90,000 is possible.
5. Potential Market Scenarios:
• Bullish Case: If BTC reclaims key resistance levels ($85,000+), it could move towards $90,000 and possibly retest $95,000.
• Bearish Case: If BTC fails to break $83,000–$85,000 resistance, another move downward to retest the $78,000–$80,000 region is likely.
