Bitcoin - Price struggles below resistance, correction to $104k?This 4-hour chart for BTC/USD illustrates a detailed technical analysis scenario highlighting key resistance and support zones, as well as a critical fair value gap (FVG). The chart shows that Bitcoin is currently facing strong resistance in the $108,000 to $109,000 range. This area has been tested multiple times without a successful breakout, indicating significant selling pressure. The price is currently trading just below this resistance zone, struggling to gain momentum above it.
Support zone in the consolidation
A clear support level has been marked in the recent consolidation area around $106,000. This zone has served as a short-term base during the recent upward movement, and a retest here could provide a temporary bounce or pause in bearish momentum. However, if this support fails to hold, the next major area of interest lies within the 4-hour bullish FVG between approximately $103,000 and $104,000.
4H FVG
There is a clear 4-hour bullish FVG between approximately $103.000 and $104.000. This level can act as a strong support for buyers after filling up the inbalance zone. it is highly important to hold this level as support and not to break below it.
Upside potential
On the upside, if BTC can defend the support in the consolidation zone and reclaim momentum, a push back to the $108,000 to $109,000 resistance area is probable. A successful breakout above this zone would invalidate the bearish scenario and may trigger a bullish continuation, with the potential to reach higher targets such as $111,000 or beyond.
Downside risk
The downside risk becomes more pronounced if BTC breaks below the 4H FVG. A sustained move beneath this level would likely signal weakness in buyer interest and potentially open the path to deeper downside targets. In such a scenario, the price could accelerate lower toward the psychological support level at $100,000. This round number also carries technical and emotional significance for traders, which could create both a strong support area and potential buying interest.
Conclusion
In conclusion, Bitcoin remains at a critical juncture. The key levels to watch are the support within the current consolidation and the 4H FVG imbalance zone. A breakdown below the FVG could lead to a decline toward $100,000, while holding above these levels keeps the door open for another test of resistance at $108,000 to $109,000. A breakout from there would indicate bullish strength and a shift in market sentiment. Traders should remain cautious and reactive to how price behaves around these critical areas.
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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