BITCOIN end of correctionThe chart depicts the BTC/USD price action on a 1-hour timeframe. Here’s a detailed analysis:
### Key Levels:
1. **Resistance Levels:**
- **Pink Zone (101,880 - 102,602):** A strong resistance area where price failed to break higher multiple times. This zone shows selling pressure and marks a critical area for a potential breakout or reversal.
- **108,267:** A major resistance level further up, yet to be tested.
2. **Support Levels:**
- **Blue Zone (92,628 - 94,496):** A significant support area, as price has bounced from this zone multiple times. It represents strong buyer interest.
- **90,690:** A lower support level, indicating the next target if the price breaks below the blue zone.
3. **Intermediate Levels:**
- **99,011 - 99,316 (Green Zone):** Previously acted as support and resistance, indicating a pivotal level.
- **100,698 (Orange Line):** A key psychological level, aligned with the round number of $100,000.
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### Chart Patterns and Trendlines:
- **Downward Channel:** The red descending trendline highlights the current bearish momentum, with lower highs and lower lows.
- **Potential W Reversal Pattern:** The double bottom formation near the blue support zone suggests a possible bullish reversal. If confirmed, the price could break above the descending trendline and target higher resistance zones.
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### Price Action Insights:
1. **Current Movement:** The price is trading around $95,433, slightly above the blue support zone. This suggests consolidation after a recent bearish trend.
2. **Key Rejections and Bounces:**
- Multiple rejections in the pink zone indicate strong resistance.
- Clear bounces from the blue support zone emphasize its importance.
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### Potential Scenarios:
1. **Bullish Scenario:**
- If the price breaks above the descending red trendline and sustains above the green zone ($99,011 - $99,316), the next target would be the orange line ($100,698) and eventually the pink resistance zone.
- A breakout above the pink zone could trigger a strong rally toward $108,267.
2. **Bearish Scenario:**
- If the price fails to hold above the blue support zone, the next target is $92,628. Further downside could lead to a retest of $90,690.
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### Summary:
- The chart reflects a consolidation phase after a bearish trend.
- Bulls need to reclaim $99,316 and break the red descending trendline to shift momentum.
- Bears will aim to break below $94,496 for further downside.
This analysis suggests close monitoring of the $94,496 and $99,316 levels to anticipate the next directional move.
