Bitcoin is currently holding steady in a critical consolidation zone, amidst record highs in US stock indices. The coming weeks may dictate whether BTC surges to new highs or dips into a fresh bear market.
Bitcoin price remains trapped in a compression zone that has been gradually narrowing for several weeks. This technical configuration, often called a “squeeze,” typically precedes a high-amplitude movement, whether bullish or bearish. BTC is currently fluctuating between a long-term bullish trendline established eight years ago and several horizontal resistance levels that are impeding its progress.
The current market structure suggests that a retest of the bullish trendline might be necessary before any serious breakout attempt. This dynamic isn’t unusual in crypto markets where consolidations help validate supports and absorb residual selling pressure. Trading volume remains moderate, indicating a waiting phase rather than aggressive distribution.
Immediate support levels don’t present particularly robust zones, which increases the risk of a rapid pullback in case of a bearish breakdown. Conversely, the absence of major resistance above the current price would facilitate a significant bullish impulse if momentum returns to the buyers’ side.
Analysis of the daily chart reveals an ascending triangle structure formed by the convergence between the eight-year bullish trendline and Bitcoin’s recent highs. This technical configuration statistically resolves to the upside more often, but the current macroeconomic context demands increased caution.
The risk/reward ratio remains favorable for long positions as long as the trendline support holds. A rejection at this level would likely trigger a cascade of liquidations and could mark the beginning of a new bearish cycle. Traders are particularly monitoring price behavior around these critical zones, with special attention to the volumes that will accompany the breakout.
Market sentiment remains mixed, with contradictory signals between on-chain analysis showing continued accumulation by whales and technical indicators signaling persistent overbought conditions. This divergence creates uncertainty that keeps many investors in a waiting position.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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