Bitcoin is consolidating inside a descending triangle, facing repeated rejection at the $106K resistance level.
Ichimoku Cloud offers strong technical support, currently cushioning price around the $104K mark.
Price is compressing between $104K and $106K, signaling reduced volatility and potential for an imminent breakout or breakdown.
Bitcoin continues to move within a confined range as the market trades cautiously near $105,000. Price action is currently shaped by a descending triangle pattern. The chart shows repeated rejection from the upper trendline, placing resistance at approximately $106,069. At the same time, the Ichimoku Cloud beneath the current level acts as a key support. This confluence area maintains price stability while broader direction remains uncertain.
Bitcoin Pressured Below $106K as Triangle Compression Builds
The descending triangle’s upper boundary has repeatedly capped upward moves since early May. This resistance remains firm, with sellers stepping in near the $106,000 area. Notably, the current price at $105,336 places Bitcoin just below the ceiling of this pattern. This tight rejection level continues to limit any attempts at a breakout. Meanwhile, the 24-hour price decline of 0.1% reflects overall market hesitation.
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However, the structure continues to compress. Each lower high reinforces the descending trendline. This pressure builds as buyers and sellers converge near a breakout threshold. As long as the resistance trendline remains intact, short-term gains may stay limited. Yet, compression within triangles often precedes a decisive move.
Ichimoku Cloud Anchors Bitcoin Support Within Tightening Triangle
Supporting this consolidation, the Ichimoku Cloud provides a cushion around the $104,309 level. This zone currently acts as both technical and psychological support. The chart reflects repeated rebounds near this band. This area continues to buffer the price from falling further, despite the downward pressure from above.
In addition, this cloud support reinforces the triangle’s base. Together, these indicators create a narrowing price corridor. Such zones are often closely watched for breakout or breakdown scenarios. While the current movement remains neutral, the cloud’s presence adds structural support to the pattern.
Bitcoin Squeezes Below $106K in Tight Triangle
With resistance capped at $106,069 and support steady near $104,309, Bitcoin is locked in a narrow band. Volatility has decreased, and price compression continues. The daily candlesticks show smaller bodies and frequent indecision near the triangle midpoint.
As price moves closer to the triangle’s apex, traders are observing closely. Each reaction to the pattern's boundaries could lead to increased volume. Until then, Bitcoin remains range-bound with limited directional cues. The structure remains valid as long as price respects both the trendlines and cloud support.
