Bitcoin is approaching a key turning point on the four-hour chart, as the recent price movement has begun to contract within a narrow range. This area represents a critical turning point that could determine Bitcoin's next move. With momentum fading and volatility shrinking, whether bulls regain control or bears push prices down, this situation calls for attention.
●▪︎ Support and resistance zones are narrowing towards the decision point.
According to ATOM B's post on X, Bitcoin has surpassed the downward trend line, a technical movement confirmed by two confirmed retests, indicating a structural shift. However, despite this breakout, Bitcoin faced strong resistance around the $108,500 and $112,500 areas, leading to a significant rejection.
As a result, the price has retraced and is retesting the demand area at $104,500, a level indicated by the ATOM B indicator as critical for the potential continuation of the bullish trend. This area has always formed a base for bullish momentum, and Bitcoin's behavior here may determine the next direction.
If bulls succeed in defending this area and record a higher low with strong trading volume, it could reactivate upward momentum, driving Bitcoin towards the resistance area at $108,000 and $112,000 to retest. On the other hand, if the $104,500 level does not hold, the next support level would be near $100,000, which could lead to increased downward pressure and a broader correction.
Bitcoin shows renewed strength on the eight-hour chart, having found strong support at the lower boundary of an expanding wedge pattern, as noted by Whales_Crypto_Trading. This technical setup often indicates increased volatility in the event of breakouts.
After holding the lower edge of the wedge, bullish momentum is increasing, suggesting that Bitcoin may be preparing for an upward wave. If this momentum continues, the price may target the $108,000 level.
Whales_Crypto_Trading also revealed that Bitcoin is attempting to bounce from the lower boundary of a descending triangle on the four-hour chart, an area considered a critical support zone. This structure is typically a continuation pattern that could pave the way for an opposing bullish move. If Bitcoin can decisively bounce from this lower support level, it may trigger a move towards the resistance level at $109,000.
●▪︎ A buy wall is forming below Bitcoin after a major bounce.
As CW claimed, Bitcoin is issuing bullish signals after a bounce. A buy wall may have formed below the price, indicating increased demand and trader confidence in maintaining the bullish trend of Bitcoin.
In addition to the bullish outlook, a "morning star" candlestick has formed on the daily chart, which is a signal preceding bullish reversals. The appearance of this pattern indicates the potential for fading bearish momentum, allowing bulls an opportunity to regain higher levels. CW indicates that only one sell wall remains at $110,800, and if Bitcoin can break through this level, it may continue to rise.
