Bitcoin consolidates inside a descending channel, facing resistance near $108,252.
The 21MA offers dynamic support below the $108,033 level.
A breakout above the channel could shift the short-term momentum upward
Bitcoin (BTC) remains stuck within a descending channel, a sign of a period of dubious short-term momentum. The cryptocurrency is currently trading at $108,033, with a small 0.1% increase over the last 24 hours. Despite this minimal increase, however, Bitcoin continues to see selling pressure near its channel resistance. The top of this channel, established at approximately $108,252, has repeatedly acted as a ceiling, capping bullish advances.
Worth mentioning, the price action of Bitcoin does not hold strong directional conviction as it whipsaws between key technical levels. The sellers appear aggressive at the level of the top channel, while demand is found at the level of the 21-day moving average (21MA), which is just below the last price.
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The moving average remains crucial as it has continued to provide dynamic support throughout recent sessions. From here, market participants are closely watching to see if Bitcoin can break out of the downward channel. To do that, it would require strong trading volume and ongoing purchasing power.
Resistance at $108,252 Caps Upside Movement
The resistance at $108,252 has remained intact, preventing a decisive breakout from the descending channel. Price action over the last sessions repeatedly approached this level but failed to close above it. The rejection is an indication that sellers are yet to relinquish this zone, keeping the upside close at hand limited.
Regarding the daily range, Bitcoin was traded within the boundaries of 107,933 and 108,252 over the last 24 hours. This little range demonstrates the constant tension between purchasers and vendors. Furthermore, the concentration on resistance indicates lengthiness on the part of bulls unwilling to drive prices above the upper edge of the channel without reinforced momentum.
As we connect these observations to the broader channel structure, it becomes clear that Bitcoin remains vulnerable to further consolidation. The market awaits a catalyst to break this deadlock.
21MA Serves as a Crucial Short-Term Support
On the negative, the 21-day moving average still provides dynamic support as it remains below the price. The current consolidation is being supported by a long-term hold above this moving average. But a decisive collapse below the 21MA may welcome a fresh wave of selling due to the channel it takes downwards.
Such a situation would probably prolong the current bearish trend in Bitcoin and lead to prices retesting the lower channel line. Traders will watch how the price action reacts to this moving average.
Overall, the next directional shift of Bitcoin will probably depend on its ability to break the support at $108,252, or the inability to form the support at 21MA. This has left the market at a significant crossroads awaiting resolution.
