Bitcoin Technical Analysis – Daily Timeframe
In the timeframe under review, Bitcoin is positioned within a clearly defined descending channel and has been oscillating between two levels of supply and demand. After encountering the demand level at $48,000, we observed a strong upward reaction from buyers that increased the price to approximately $60,000. This upward movement was bolstered by the activation of a large buy order (demand order block) in this area. The break below the $48,000 level followed by the subsequent upward reaction indicates strong demand at this price point. However, to confirm the continuation of the upward trend, Bitcoin must decisively surpass the resistance level at $60,000. Otherwise, there is a possibility of a price return to the descending channel and a retest of lower support levels.
Bitcoin Technical Analysis – 4-Hour Timeframe
Bitcoin is currently moving within a clearly defined ascending channel. However, it has now reached a significant supply zone around $66,000, which aligns precisely with the upper boundary of the channel. This convergence of two strong resistance levels increases the likelihood of a price correction.
If Bitcoin is unable to break through this resistance and establish a price stabilization above it, a price correction toward the lower boundary of the channel is anticipated. This correction may present an opportunity for re-entry at lower levels.
Bitcoin Technical Analysis – 1-Hour Timeframe
A breakout to the upside from the flag pattern has the potential to initiate a short-term rally in Bitcoin. However, a stronger signal is needed to confirm a longer-term upward trend. A decisive break and price stabilization above the supply zone in the 4-hour timeframe could be considered a valid signal for the continuation of the bullish trend.
As long as Bitcoin is unable to break this important resistance, there is a possibility of a return to a bearish trend or sideways movement. Therefore, investors should proceed with caution and utilize stop-loss orders to manage risk.