Bitcoin (BTC) is experiencing significant price fluctuations within a wide range, currently trading at $86,658, down 0.90% on the BITSTAMP platform. Based on technical analysis, a short-term bearish pattern is emerging that could lead to a retest of support levels before a strong rebound upwards.
Artistic vision
The price is moving within a short-term descending channel, facing strong resistance at $87,800-$88,000, which has led to several price rejections.
The downward correction is expected to continue until the support area between $85,500 and $85,000, a strong demand area that has previously seen a strong rebound.
The likely scenario is a sharp upward rebound from this area, which could push the price towards $90,000 and above, if the support holds.
Possible strategy for traders
1. Potential Buying Areas: $85,500 - $85,000, with a stop loss below $84,800 to protect against a support break.
2. Upside targets: Target levels will be $88,000 and then $90,500 if the rebound is successful.
3. Confirmation signals: Follow the price action at support, and wait for bullish reversal candles before entering buy trades.
Bitcoin appears to be in a corrective phase before attempting a fresh breakout above the upper resistance. Monitoring the $85,500 area will be crucial for making informed trading decisions. A break above this area could push the price toward lower levels, while a strong rebound from there could be a good buying opportunity.
Warning: This analysis is not investment advice, and traders should conduct their own research and manage risks carefully.
