Bitcoin Technical Analysis – Daily Timeframe
In the daily timeframe, Bitcoin is positioned within a descending channel. After encountering the demand zone at $49,000, which coincides with the support line of the channel’s lower boundary, it has made a strong recovery from this level and increased to approximately $66,000. The daily supply and demand zones are indicated by the blue box.
Bitcoin Technical Analysis – 4-Hour Timeframe
In the 4-hour timeframe, Bitcoin has experienced a significant decline upon reaching the supply zone at $65,000, bringing it to the lower boundary of its 4-hour channel.
If the lower boundary of the channel is breached, it is expected that Bitcoin will continue its decline toward the lower boundary of the daily channel. Conversely, support at the lower boundary of the 4-hour timeframe could lead to a price increase toward the supply zone around $62,000.
Bitcoin Technical Analysis – 1-Hour Timeframe
The supply zone at $62,000 in the 1-hour timeframe could lead to a price decline and a breach of the lower boundary of Bitcoin’s 4-hour channel. Conversely, support at the lower boundary of the 4-hour channel and a breakout from the supply zone could result in a price increase toward the upper boundary of the 4-hour channel.
We must wait for a proper price reaction at the specified zones to make the best decision for market positioning.