Bitcoin is currently trading around $103,500, and the price action is presenting a textbook technical scenario with multiple confluences. This chart is rich in structure — from rejection zones and trendlines to channel breakdowns and historical support retests — making it a critical area for traders to observe.
🔍 1. Previous Reversal Zone
The chart shows that Bitcoin previously faced a strong rejection near the $110,500–111,000 level. This created the first lower high, signaling the end of bullish momentum and the start of a trend shift. Every subsequent touch of that zone resulted in rejection, confirming it as a major supply zone.
📉 2. Descending Trendline – Dynamic Resistance
After multiple failed attempts to break above, price has formed a clean descending trendline that is acting as dynamic resistance. Each touch along this trendline has led to a short-term selloff, and price is now approaching this line again, near the Next Reversal Zone.
📌 This confluence increases the probability of another rejection unless there's a strong bullish breakout with volume.
📊 3. Bearish Channel & Breakdown
Before the recent fall, Bitcoin was trading inside a small bearish channel. This type of consolidation often results in continuation — which we saw with the downside breakout. This breakdown also increased bearish momentum and pushed BTC into the major support area.
🧊 4. Major Support Zone – The Battle Ground
Marked around the $101,000–102,000 range, this zone has acted as a strong demand area multiple times. The most recent bounce suggests that buyers are still active here. This could be the last defense for bulls in the short term.
🧠 If this zone breaks, we could see price falling toward the psychological level of $100,000 or even lower.
🌀 5. Ellipse Zone – Accumulation Structure
Early on the chart, an ellipse highlights a horizontal accumulation zone where price moved sideways before breaking out upward. This shows how smart money often enters during quiet phases before explosive moves. Watching for similar signs can provide strong trade setups.
🔄 6. Next Reversal Zone – Watch Closely
Price is now approaching the Next Reversal Zone near $104,500–105,000, which aligns perfectly with the descending trendline. This is a high-probability rejection zone where traders should be watching for bearish confirmations like wicks, pin bars, or bearish engulfing candles.
📌 Two Possible Scenarios
🟥 Bearish Scenario (High Probability):
Price touches the Next Reversal Zone and gets rejected.
We could see a drop back to the Major Support Zone.
If support breaks, expect a move toward $100K–99K in the coming sessions.
🟩 Bullish Scenario (Low Probability Without Volume):
Price breaks and closes above the trendline with strong bullish candles and increased volume.
In that case, BTC could rally toward the $107K–108K resistance and potentially flip the trend bullish.
💡 Trading Insight:
Fridays usually have low volume, leading to unexpected wicks and false breakouts. That’s why it’s important to:
Use small lot sizes
Wait for confirmations
Avoid overtrading before weekend closes
🧠 Final Thoughts:
This is a classic setup — consolidation after trend, rejection zones, trendline resistance, and strong support areas all in one chart. Whether you’re a price action trader or a structure-based analyst, this chart offers a powerful decision point.
Stay patient. Let the market reveal its hand. The next few candles around this trendline will likely dictate the next 1–3 day direction for BTC.