Bitcoin Faces Key Resistance, Potential Pullback Looms
Bitcoin’s upward momentum is slowing as it hits a crucial resistance zone. Three technical factors hint at a possible local top, suggesting a short-term correction may be on the horizon.
Over the weekend, Bitcoin’s price stalled after a strong climb.This isn’t random; it’s hitting a level with significant technical resistance. If this area holds, it could confirm a local top and trigger a correction.
Here are the key points to watch:
- Channel High Resistance: Bitcoin is being rejected at the top of a long-standing trend channel.
- Point of Control: A high-volume node from November 2024 is acting as resistance.
- Bearish Shark Pattern: A harmonic setup has activated, hinting at a potential trend reversal.
Bitcoin has been climbing steadily but hit a wall at the upper boundary of a trend channel as late 2024. These levels often act as turning points, and this rejection could signal the uptrend is losing steam.
The Point of Control from November 2024 is also a key resistance. This price level saw the most trading volume and is now a battleground. Sellers are showing strength here.
A bearish Shark harmonic pattern has completed at this resistance. If Bitcoin breaks below the recent swing low at $91,648 on strong volume, it could trigger a deeper correction, possibly targeting the $86,000 range.
Until key support levels break, the pullback might potentially be a healthy pause. But if $91,600 is lost, it could mark the start of a deeper correction. Bulls need to reclaim the upper zone quickly to regain control.
