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Bitcoin has been fluctuating within a bearish market structure, forming lower highs and lows on the daily chart. This movement has created a descending channel pattern. The price action shows multiple rejection candles with prominent lower shadows at the bottom of the channel, indicating buying pressure. The latest test of the lower channel border has resulted in a bullish swing, driving prices towards the resistance boundary. The strength of buyers will determine whether the bearish channel continues or if a breakout to the upside occurs. Lower timeframes may offer early signs of a market shift near the channel borders.
BTC Key Levels
- Demand Levels: 59,209.0, 51,683.0, 42,500.0
- Supply Levels: 63,814.0, 73,794.0, 100,000.0
What Are the Indicators Saying?
The Stochastic oscillator signaled oversold conditions during the last test of the channel’s lower border, prompting a bullish reversal. The 9- and 21-period Moving Averages have shifted below the daily candles, offering support along with a bullish order block at 57,500.0. However, the Stochastic is now in the overbought zone, suggesting a potential reversal near the resistance border of the parallel channel.
A breakout remains a strong possibility, with $70,000 acting as a magnet due to the rich liquidity present at this zone, marked by relative equal highs. Traders should monitor price action at the channel borders for further confirmation of a possible upward breakout.
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