BTCUSD Technical Analysis Highlights Critical Levels
Bitcoin (BTC/USD) is showing signs of resilience after a volatile week, with the price trading around $113,700 following a sharp pullback. The four-hour chart indicates that the cryptocurrency recently tested a crucial support level near $112,000, where buyers stepped in to defend against deeper losses.
The current setup reveals a descending channel pattern, with Bitcoin moving between a lower trendline of roughly $109,000 and an upper boundary near $122,000. This range has acted as a guide for price action over the past several weeks, with repeated tests of both resistance and support.
“Bitcoin’s ability to hold above the $112,000 zone underscores ongoing demand at lower levels,” said BITX market strategist. “However, the market remains sensitive to macroeconomic signals, and traders should watch for confirmation before expecting a sustained recovery.”
A rejection level around $118,000 remains the first major obstacle for bulls. Analysts note that a breakout above this region could open the door to a retest of the $122,000 resistance zone, which capped previous rallies. Conversely, failure to maintain support could push BTC toward the $109,000 channel base, a level that has repeatedly attracted buying interest.
Trading volume has shown a moderate uptick during recent sessions, hinting at growing participation as the market consolidates. “Volume spikes near support zones typically indicate accumulation,” According to BITX analysts. “If the trendline continues to hold, we could see a gradual move toward the upper boundary of the channel in the coming days.”
For now, traders are advised to monitor the green support band and the red rejection area for short-term signals. Sustained closes above $114,000 would strengthen the bullish case, while a drop back below $112,000 could shift momentum in favor of sellers.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.