Bitcoin Respects Resistance Trendline

Bitcoin has experienced a notable price decline over the past few days, largely driven by selling pressure encountered at the resistance trendline on the daily chart. This resistance has proven significant in halting upward momentum, leading to a bearish shift.

 

Bitcoin’s price action has formed a descending channel, with the boundaries marked by a resistance trendline and a support trendline, both sloping downward. In September, the price tested the lower boundary of the channel at $52,520.0, which triggered a temporary price expansion toward the resistance. However, this upward move was short-lived, and Bitcoin remains constrained within the channel.

Despite this bearish environment, there is still hope for the bulls. Bitcoin has pulled back into a bullish order block, offering a potential opportunity for long positions if buyers capitalize on the situation. A breakout from the current pattern could reignite bullish momentum.

 

 

Bitcoin Key Levels

Demand Zones: $58,014.0, $52,530.0, $49,050.0
Supply Zones: $64,529.0, $70,093.0, $100,000.0

 

Technical Indicators

The price has fallen below the 9-period and 21-period Moving Averages, reflecting the influx of selling orders as Bitcoin tested the resistance trendline. Additionally, the Hull Butterfly Oscillator has shifted toward zero, signalling the disappearance of bullish momentum and further reinforcing the bearish outlook. For Bitcoin to reverse, buyers would need to defend the current order block and push for a breakout above the resistance line.

 

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