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Bitcoin’s recent price action showcases an impressive upward impulse that began in March, capturing market interest as it propelled the price significantly higher. However, after this strong push, Bitcoin entered a correction phase, which has since shaped into a broad bearish channel on the daily chart. This corrective structure has contained price movement within a well-defined range, with buyers and sellers holding to the channel boundaries. Notably, Bitcoin’s last test of the channel’s lower boundary occurred in early September, initiating a bullish structural shift as anticipated, with price action consistently establishing higher lows—a promising sign of strengthening bullish momentum from the channel’s support.
Overview:
Following this steady ascent, Bitcoin encountered the upper resistance trendline of the channel, which ultimately failed to contain the rally. Prices breached this resistance level, signalling a shift in momentum and underscoring buyer strength. Now, Bitcoin has returned to the bearish trendline, testing it from above—a classic technical pattern suggesting a potential support level for the continuation of the uptrend. Should this retest hold, it would confirm the trendline as a reliable foundation for the next leg of the rally.
Bitcoin Key Levels
- Demand Levels: $63,814, $59,209, $54,839
- Supply Levels: $70,016, $73,794, $80,000
Technical Indicators
Key indicators support the view of bullish continuation. The Smoothed Heikin Ashi candles, positioned consistently beneath the daily candles, reflect an upward bias on the daily chart. Meanwhile, the Hull Butterfly Oscillator remains positive, a bullish indication that momentum is sustaining. Although a minor decline is visible in the oscillator, suggesting a pullback, it aligns with a healthy consolidation within a broader uptrend, reinforcing expectations for upward continuation.
The current market structure, in conjunction with the supportive retest of the trendline, suggests that Bitcoin may be in the early stages of a potential rally toward new highs. With key supply levels approaching, a successful breakout above the retested trendline could set Bitcoin on course for new record highs. This alignment of technical factors signals a strong bullish outlook, positioning BTC to continue its ascent if supported by sustained buying interest.
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