Bitcoin has been struggling to sustain its latest rally, with the cryptocurrency currently testing a short-term descending trendline on the hourly chart.
The current price of $103,914 shows that buyers have managed to push the price back above the crucial $103,000 psychological level, but the asset now faces a critical technical juncture as it forms a triangle holding pattern below the latest highs near $104,000.
Key Bitcoin Levels
BTC/USD has formed a descending triangle consolidation pattern after recovering from its earlier dip to around $101,000. This pattern, framed by the descending trendline from the top and the horizontal support around the $101,500 area, suggests accumulation before a potential breakout.
The cryptocurrency is currently facing immediate resistance at the descending trendline situated approximately at $104,000-$104,500. A decisive break above this level could signal a continuation of the uptrend, potentially targeting the recent swing highs near $105,000, followed by the psychological $107,000 level then the all-time highs.
On the downside, the price has established strong support at $101,500, which has held firmly during recent tests. Below this, the next significant support zone would be at $100,000, a critical psychological level that would likely attract substantial buying interest.
Potential Momentum Shift
The 100 SMA (blue line) is positioned above the current price but appears to be providing dynamic support near the $103,000 area. This moving average has been instrumental in guiding the recent price action, with the price respecting it as both resistance and support during the consolidation phase.
The gap between the moving averages is narrowing to reflect slowing upside momentum and a potential bearish crossover that could attract selling pressure.
The stochastic oscillator in the lower panel is showing a bullish crossover from near the oversold territory, suggesting increasing buying momentum. This indicator is now moving upward and approaching the overbought region, which implies that buyers remain in control for the short term.
The MACD (Moving Average Convergence Divergence) indicator in the middle panel is showing early signs of a bullish crossover, with the blue line starting to converge with the orange signal line. The histogram bars are also turning green, indicating potential upward momentum building up.
What’s particularly interesting is the volume profile shown by the green and red bars on the lower middle panel. Recent price advances have been accompanied by increasing green volume bars, suggesting genuine buying interest behind the current move.
The overall technical structure appears cautiously bullish as long as Bitcoin maintains position above the 100 SMA and the $101,500 support level. The consolidation within the triangle pattern typically resolves in the direction of the prevailing trend, which in this case leans bullish.
For now, the cryptocurrency appears to be gathering strength for its next significant move, with technical indicators slightly favoring the bulls while price action remains constrained within the established consolidation pattern.
