Bitcoin holds strong support near $104,000, showing increased buying interest in this price area.
Resistance near $106,000 limits Bitcoin's rise as the 50MA acts as a short-term ceiling.
A breakout above $106000 and a descending triangle may confirm a bullish trend for BTC.
After falling to a significant demand area within a descending triangle, Bitcoin (BTC) is starting to show improvements. At this time, the 100-day moving average (100MA) is providing strong support and aiding bullish prices. Though things are going well, Bitcoin is still being kept in check by the 50-day moving average (50MA). In case BTC moves above 50MA and the triangle pattern, it would confirm a positive upward momentum for the asset. Before that, it is likely that the pattern will remain unbroken.
Source: X BTC Rebounds from Key Support Zone with 100MA Backing
Bitcoin has just risen above a demand zone found in a descending triangle. Lately, this level has been a major level of support for the price. Buyers have a strong foundation to push prices up in the demand zone which lies between $102,000 and $104,000. Further support is given by the 100MA technical indicator which is often used by traders to judge medium-term trends.
At the moment, Bitcoin is being supported by the 100MA which prevents it from falling too much. Therefore, buyers are still active around this price which may be helping the recent gains. When the price moves up from the bottom, it indicates bullish activity, as the cryptocurrency tries to recover from its past falls. Bitcoin has remained above $100,000 lately because this support zone has soaked up selling pressure a few times.
Resistance at 50MA Caps Bitcoin’s Upward Move
While Bitcoin shows signs of recovery, resistance from the 50MA is limiting further price gains. The 50MA represents a shorter-term trend line and acts as a ceiling in this context. The price is struggling to break above this resistance, which restricts bullish momentum. This cap has caused Bitcoin’s price action to consolidate below this moving average, creating uncertainty among traders.
The 50MA currently sits near $106,000, closely aligning with the descending triangle’s upper trendline. The descending triangle pattern, formed by lower highs and consistent support, indicates potential pressure building within the market. This resistance could lead to sideways movement or further consolidation before any significant breakout attempt.
Breakout Potential: Will Bitcoin Confirm a Bullish Trend?
Traders and investors are closely watching for a breakout above both the 50MA and the descending triangle’s upper boundary. Such a move would signal a shift from consolidation to a confirmed bullish trend. A successful breakout could open the path for higher price targets, possibly surpassing recent highs above $110,000.
Until this breakout occurs, Bitcoin’s price may remain range-bound within the descending triangle. The pattern shows that sellers are applying pressure at lower highs, while buyers defend the horizontal support zone. This tug-of-war creates a situation where price consolidation is probable in the near term.
The main question here is: will Bitcoin manage to pass through the descending triangle and 50MA resistance to continue moving up? Many traders in the market will monitor buying and selling volumes as well as the trend of prices. Breaching these technical barriers repeatedly may cause the price to rise, encouraging investors to enter the market.
