Current Bitcoin Price Action and Resistance
The Bitcoin price is still holding above $93,000, which is quite some distance from the low of $80,000. That said, can the bulls maintain this rally, or are the bears about to step in and send the price lower?
While it looks as though the BTC price is in the process of getting rejected from the $94,000 horizontal resistance level, the bulls are still clinging above the main downtrend line. If the bulls were able to stay above this trendline it would be a major coup, and the climb back to the highs could begin in earnest.
However, price movements often follow a tortuous path, and with short-term Stochastic RSI indicator lines topping out, the all-important upside momentum could be about to fall away. In fact, this is the higher probability at this time.
It can be seen that the price retested the underside of the ascending channel (in blue), and so unless the price climbs back into the channel again, this was likely a confirmation of the channel breakdown. Therefore, it looks as though the bulls are about to step back in and take the price lower.
Probably the best scenario for the bulls would be for a retest of the descending trendline (middle of chart). Other than that, there is still the possibility that the price could fall back to $86,000 and the major trendline again.
Bullish "W" Pattern Suggests Potential Upside to $103,000
A W pattern is still very much in play, as can be seen in the daily time frame. The pattern is still lacking a confirmation of the neckline, but if it does play out, the measured move would be to at least $103,000.
The Stochastic RSI is at the top in this time frame, but upside price momentum is still being signalled. At the bottom of the chart, the RSI indicator is heading up after retesting the breakout of the downtrend.
Potential Wedge Breakout on the Horizon
After breaking out of an 8-month bull flag back in November 2024, the price rose sharply and then started to form what became a falling wedge, which was five months in the making. This then broke out in its turn and the price rose again, forming what was to become an even bigger falling wedge. This wedge is now more than seven months in the making, and a breakout, perhaps as early as next week or the week after, is a distinct possibility.
Meanwhile, the Stochastic RSI indicators are rising up from the bottom. It may only be another week or two before they both cross above the 20.00 line. This is likely to signal the big upside price momentum that could send BTC back to the all-time high.