On the hourly chart, Bitcoin showed a flat to bearish position, forming a narrow channel between $103,500 and $105,500.
Price actions demonstrated a bearish flag pattern, which is typically a signal for a continuation of the downward movement unless invalidated by bullish volume.
Volume thinning highlights market indecision, with potential intraday scalping near $103,500 targeting $104,800 to $105,000.
A decisive breakout above $105,500, supported by volume, could trigger a short-term rally, while a breakdown below $103,000 would likely activate bearish momentum with targets around the $100,000 mark.
The four-hour Bitcoin chart showed a prevailing downtrend from a local high of $108,990 to a recent low of $103,388, followed by a lackluster sideways movement.
Lower highs and lows emphasize a bearish structure, while increased selling volumes hint at institutional exit activity.
Potential long-term trading deals require a breakout above $105,500 with increased volume, while a failure to hold support at $103,000 could pave the way for testing lower levels at $101,000 and $100,000, aligning with short position triggers.
On the daily chart, a broad overview of Bitcoin shows a peak around $112,000, followed by a sharp decline to $100,426, culminating in the current consolidation around $105,000.
This pattern aligns with the developing head and shoulders, a classic bearish formation.
Rejection of price at higher levels and increased volume on red candles indicates distribution.
Conservative long trades may find value around $100,500 to $101,000 if there are clear bullish confirmations, while a breakout below $100,000 would indicate further downside risks.
Bullish verdict:
If Bitcoin confidently breaks the resistance level of $105,500 with strong accompanying volume, especially on the four-hour or daily chart, it may signal the beginning of a recovery towards the $108,000 zone and possibly higher.
Support from long-term moving averages suggests that foundational resilience remains, and a bullish reversal candle or divergence would strengthen the growth scenario.
Bearish verdict:
If Bitcoin breaks the support level of $103,000 with increased volume, the market will likely retest $101,000 and possibly the psychological support at $100,000.
Bearish momentum from oscillators and short-term moving averages indicates prevailing selling pressure, and a confirmed breakout could trigger an accelerated decline towards the mid-range of $90,000.