The BTCUSD 4-hour chart shows a clear break in market structure, transitioning from a strong bullish trend to a bearish corrective phase. Price had been respecting an ascending trendline for several weeks, supported by consistent higher highs and higher lows. However, the recent break below this trendline signifies a potential reversal or at least a deeper correction.
After the trendline break, price may retrace into the $108,000 level, which aligns with a newly formed supply zone. This area may provide strong resistance, leading to renewed selling pressure and a continuation of the downward movement.
The projected path indicates further downside potential toward the $94,000–$98,000 support zone, a previous consolidation and breakout area that may now serve as a demand zone. This zone is expected to attract buyers and potentially lead to a bullish reaction.
Conclusion:
BTC is currently in a corrective phase following a sustained bullish trend. Traders should watch for bullish signs at the $96K–$98K zone or further breakdowns if that level fails. A reclaim of $110K would invalidate the current bearish outlook.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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After the trendline break, price may retrace into the $108,000 level, which aligns with a newly formed supply zone. This area may provide strong resistance, leading to renewed selling pressure and a continuation of the downward movement.
The projected path indicates further downside potential toward the $94,000–$98,000 support zone, a previous consolidation and breakout area that may now serve as a demand zone. This zone is expected to attract buyers and potentially lead to a bullish reaction.
Conclusion:
BTC is currently in a corrective phase following a sustained bullish trend. Traders should watch for bullish signs at the $96K–$98K zone or further breakdowns if that level fails. A reclaim of $110K would invalidate the current bearish outlook.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
___________________________________
Thanks for your support!
If you found this idea helpful, drop a like 🚀 and leave a comment, I’d love to hear your thoughts!
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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.