Yesterday, we didn’t get a clear breakout and the market remains stuck between two level like forming red green pattern.
This chart shows the Bitcoin-to-USD (BTC/USD) price action, likely on the 1-hour timeframe, with indications of a potential bearish movement. Here’s a quick analysis based on the provided image:
Key Observations: 1. Current Price: The price is around $94,921, showing a slight decline (-0.23%).
2. Ascending Channel: The chart indicates a rising channel (black trendlines) that is nearing its upper boundary, suggesting potential exhaustion of the upward momentum.
3. Resistance Zone: A purple rectangle marks a resistance area where the price has struggled to break through.
4. Bearish Rejection and Projection: • The price appears to be consolidating near the upper trendline but lacks strong bullish momentum. • An arrow indicates a potential breakdown from the channel, aiming toward lower levels around $93,000.
5. CCI Indicator: • The Commodity Channel Index (CCI) shows a decline from overbought territory (above 100), indicating bearish momentum could be building.
Potential Scenario: • Bearish Breakdown: If the price breaks below the ascending channel, it could test the $93,000 level or even lower to the $92,000 support zone. • Invalidation: If the price breaks above the resistance zone and holds, the bearish outlook would be invalidated, leading to further upward movement.
Trading Suggestion: (Don’t follow me blindly as I am not a certified trader) • Consider short positions if the price breaks below the channel and confirms with volume or candlestick patterns. • Monitor support zones near $93,000 and $92,000 for potential profit-taking or reversal signals. • Place a stop-loss above the resistance zone to manage risk.