Bitcoin has been in selloff mode again, but bulls could have an opportunity to charge as price tests the bottom of an ascending channel on the 4-hour chart.
Or will we see a break lower and further downside for BTC/USD?
Better keep close tabs on these inflection points!
Bitcoin (BTC/USD) 4-hour Chart by TradingView
The crypto mood has soured again in the previous week, as bitcoin struggled to catch a bid despite risk flows in both directions.
BTC/USD lost ground early on while risk-off flows picked up on tariffs-related geopolitical tensions then proceeded to extend its decline even as risk-taking returned on de-escalation developments.
Will bearish momentum trigger a break below the channel support?
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BTC/USD is already testing its ascending channel support around $88,000 and just below the pivot point ($88,733), still deciding whether to bounce or to break.
If support holds, look out for a move back above the pivot point level to confirm the presence of buying pressure, which could eventually lift bitcoin to R1 ($91,466) then R2 ($96,365) close to last week’s highs.
Sustained bullish momentum could even take BTC/USD to R3 ($99,098) near the channel resistance or perhaps another test of the key $100K ceiling.
On the other hand, long red candlesticks piercing below the channel bottom could suggest that a steeper selloff is in order, possibly dragging bitcoin to S1 ($83,834) then S2 ($81,101).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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