Bitcoin is approaching a key inflection point on the 4-hour chart, where recent price action has begun to tighten within a narrowing range. This area marks a crucial junction that could determine BTC’s next move. As momentum fades and volatility compresses, whether bulls reclaim control or bears push prices lower, this setup demands attention.
Support And Resistance Zones Narrow Into Decision Point
According to ATOM B’s post on X, Bitcoin has broken above the downward trendline, a technical move that was validated by two confirmed retests, signaling a structural shift. However, despite the breakout, BTC encountered strong resistance around the $108,500 and $112,500 zones, resulting in a notable rejection.
As a result, the price has pulled back and is retesting the $104,500 demand zone, a level highlighted by ATOM B as critical for potential bullish continuation. This zone has typically acted as a base for upward momentum, and how BTC behaves here could dictate the next directional bias.
If bulls successfully defend this area and print a higher low with strong volume, it could reignite upward momentum, sending BTC back toward the $108,000 and $112,000 resistance region for another test. On the other hand, if $104,500 fails to hold, the next support lies near $100,000, which could invite increased bearish pressure and a broader correction.
Bitcoin is showing renewed strength on the 8-hour chart, where it has found solid support at the lower boundary of a broadening wedge pattern, as noted by Whales_Crypto_Trading. This technical setup often signals increased volatility for breakout moves.
After holding the lower edge of the wedge, bullish momentum is building, suggesting that BTC may be preparing for a leg higher. If this momentum sustains, the price could target the $108,000 level.
Whales_Crypto_Trading also revealed that Bitcoin is attempting a bounce from the lower boundary of a descending triangle on the 4-hour chart, an area that is a crucial support zone. Typically, this structure is a continuation pattern that can set the stage for a bullish counter-move. If BTC manages a decisive bounce from this lower support, it might trigger a move toward the $109,000 resistance level,
Buy Wall Builds Beneath Bitcoin After Key Bounce
As claimed by CW, Bitcoin is flashing bullish signals following a bounce. A buy wall has formed beneath the price, suggesting an increasing demand and trader confidence in holding the BTC uptrend.
Adding to the bullish case, a Morning Star candlestick has formed on the daily chart, a signal that precedes upward reversals. The emergence of this setup indicates that bearish momentum may be fading, giving bulls an opening to reclaim higher levels. CW highlights that only one sell wall remains at $110,800, and if Bitcoin can break through this level, it might continue its rally.
Featured image from Getty Images, chart from Tradingview.com
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