Price is moving within a downward-sloping channel with lower highs (LH) and lower lows (LL), indicating a bearish structure. Major Support & Resistance:
Support: Around $89,000, marked as "major support." Resistance: Around $105,000, marked as "major resistance." BTC is currently near support, which could act as a potential bounce zone. Double Top Formation:
A double top pattern was formed around $105,000, confirming strong resistance. This led to a rejection and continuation of the downtrend. Fake Breakout:
A previous attempt to break above resistance failed, causing a sell-off. Potential Scenarios:
Bullish Case: If BTC holds the support zone and breaks the resistance line, it could move towards the 100K+ zone. Bearish Case: If BTC fails to hold support, it could retest $89,000 as mentioned on the chart. RSI Divergence:
RSI is showing a slight bullish divergence, meaning price is making lower lows while RSI is making higher lows. This could indicate a potential reversal or temporary bounce. Conclusion & Strategy: Watch the 89K-90K support level closely. A breakout above the resistance line may confirm a bullish reversal. If price loses support, the next downside target could be 85K-87K. RSI divergence suggests a possible short-term bounce. 🚨 Trading Plan:
Long Entry: If BTC reclaims the resistance line with volume confirmation. Short Entry: If BTC loses support and breaks below 89K with strong selling pressure.