"Bitcoin Coiling Below Key Resistance – Breakout or Trap?"
🔍 Technical Overview:
Bitcoin is currently trading within a compressed range, sitting just below a key descending trendline that has capped upside movement for multiple sessions. Price is consolidating between minor highs and lows, hinting at a build-up of momentum for the next breakout move.
The setup presents a classic compression inside a bearish wedge, but with increasing bullish pressure evident from higher lows and wick rejections near minor supports.
🧱 Detailed Technical Breakdown:
🔸 1. Descending Trendline Structure
Price has formed a downward sloping resistance line from earlier highs.
This trendline has acted as a dynamic ceiling, rejecting multiple bullish attempts.
Each time price approaches it, the rejection gets weaker, indicating a possible breakout attempt soon.
🔸 2. Multiple Minor & Major Zones
Minor Resistance: Around $118,800–$119,200
A short-term ceiling that has paused bullish rallies.
Price needs a clean break and close above this to initiate momentum.
Major Resistance: ~$121,000–$121,200
This zone aligns with a previous significant swing high.
A break above here could result in strong bullish continuation toward ATH levels.
Minor Support: ~$117,000
Price has repeatedly bounced from this level.
A breakdown would indicate fading bullish strength and open the downside.
Major Support: ~$115,000
A historically strong demand zone.
If BTC fails all bullish attempts, this would be the final defense for buyers.
🧠 Market Psychology Insight:
Price is trapped between aggressive short-term sellers and accumulating buyers.
Buyers are placing confidence in this area by defending higher lows.
Sellers are still protecting the trendline, but with each retest, the defense weakens.
This is a classic equilibrium zone where liquidity is building—once imbalance hits, a strong impulsive breakout (either direction) is likely.
Volume and momentum should be watched closely as a breakout with confirmation may trap the opposite side, leading to a strong move (short squeeze or long liquidation).
🔮 Scenario Forecasts:
📈 Bullish Breakout Scenario:
Price breaks above $119,200 → minor resistance flips to support
Retest of the broken trendline confirms a bullish breakout
Price targets:
First Target: $121,000–$121,200 (major resistance)
Second Target: $122,500+
Third Target: $123,800–$124,000 (All-Time High)
Confirmation Needed: 4H candle close above descending trendline and $119,200 with rising volume.
📉 Bearish Rejection Scenario:
Price gets rejected from the trendline or minor resistance zone
Breaks below $117,000 minor support
Possible targets:
First Target: $116,000 (reaction zone)
Second Target: $115,000 (major support)
A fall below $115,000 could invalidate the bullish buildup and invite strong bearish continuation.
This would signal that bulls failed to reclaim control, and sellers maintain market structure dominance.
📌 Key Levels Summary:
Type Price Range Significance
🔺 All-Time High $123,800–124,000 Final upside target
🔸 Major Resistance $121,000–121,200 Key breakout level
🔹 Minor Resistance $118,800–119,200 Immediate trendline + local supply
🔹 Minor Support ~$117,000 Local demand base
🔻 Major Support $115,000 Last line of defense for bulls
🧭 Conclusion & Strategy:
Bitcoin is approaching a make-or-break zone under a significant descending trendline. Price compression is tightening, and a breakout looks imminent.
Traders should stay patient and wait for confirmation—either a breakout and successful retest for longs or a rejection and trendline defense for shorting opportunities.
Whether it’s a breakout toward $121K and ATH, or a drop toward $115K support, this setup offers a high-probability trade opportunity for both bulls and bears depending on the confirmation.
🔍 Technical Overview:
Bitcoin is currently trading within a compressed range, sitting just below a key descending trendline that has capped upside movement for multiple sessions. Price is consolidating between minor highs and lows, hinting at a build-up of momentum for the next breakout move.
The setup presents a classic compression inside a bearish wedge, but with increasing bullish pressure evident from higher lows and wick rejections near minor supports.
🧱 Detailed Technical Breakdown:
🔸 1. Descending Trendline Structure
Price has formed a downward sloping resistance line from earlier highs.
This trendline has acted as a dynamic ceiling, rejecting multiple bullish attempts.
Each time price approaches it, the rejection gets weaker, indicating a possible breakout attempt soon.
🔸 2. Multiple Minor & Major Zones
Minor Resistance: Around $118,800–$119,200
A short-term ceiling that has paused bullish rallies.
Price needs a clean break and close above this to initiate momentum.
Major Resistance: ~$121,000–$121,200
This zone aligns with a previous significant swing high.
A break above here could result in strong bullish continuation toward ATH levels.
Minor Support: ~$117,000
Price has repeatedly bounced from this level.
A breakdown would indicate fading bullish strength and open the downside.
Major Support: ~$115,000
A historically strong demand zone.
If BTC fails all bullish attempts, this would be the final defense for buyers.
🧠 Market Psychology Insight:
Price is trapped between aggressive short-term sellers and accumulating buyers.
Buyers are placing confidence in this area by defending higher lows.
Sellers are still protecting the trendline, but with each retest, the defense weakens.
This is a classic equilibrium zone where liquidity is building—once imbalance hits, a strong impulsive breakout (either direction) is likely.
Volume and momentum should be watched closely as a breakout with confirmation may trap the opposite side, leading to a strong move (short squeeze or long liquidation).
🔮 Scenario Forecasts:
📈 Bullish Breakout Scenario:
Price breaks above $119,200 → minor resistance flips to support
Retest of the broken trendline confirms a bullish breakout
Price targets:
First Target: $121,000–$121,200 (major resistance)
Second Target: $122,500+
Third Target: $123,800–$124,000 (All-Time High)
Confirmation Needed: 4H candle close above descending trendline and $119,200 with rising volume.
📉 Bearish Rejection Scenario:
Price gets rejected from the trendline or minor resistance zone
Breaks below $117,000 minor support
Possible targets:
First Target: $116,000 (reaction zone)
Second Target: $115,000 (major support)
A fall below $115,000 could invalidate the bullish buildup and invite strong bearish continuation.
This would signal that bulls failed to reclaim control, and sellers maintain market structure dominance.
📌 Key Levels Summary:
Type Price Range Significance
🔺 All-Time High $123,800–124,000 Final upside target
🔸 Major Resistance $121,000–121,200 Key breakout level
🔹 Minor Resistance $118,800–119,200 Immediate trendline + local supply
🔹 Minor Support ~$117,000 Local demand base
🔻 Major Support $115,000 Last line of defense for bulls
🧭 Conclusion & Strategy:
Bitcoin is approaching a make-or-break zone under a significant descending trendline. Price compression is tightening, and a breakout looks imminent.
Traders should stay patient and wait for confirmation—either a breakout and successful retest for longs or a rejection and trendline defense for shorting opportunities.
Whether it’s a breakout toward $121K and ATH, or a drop toward $115K support, this setup offers a high-probability trade opportunity for both bulls and bears depending on the confirmation.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.