Traders anticipate a bullish reversal as Bitcoin tests the lower boundary of its channel near $106K
Bitcoin (BTC) is showing signs of stabilizing after a sharp correction, with traders closely watching the $107,500 resistance level for confirmation of a potential upside breakout. The move comes as the world’s largest cryptocurrency continues to consolidate inside a descending channel following its recent rejection near $123,000.
On the daily chart, Bitcoin has bounced from the $106,000 support zone, highlighted by a wide green demand area that has historically triggered strong bullish reactions. The price currently trades near $106,769, up 0.23% on the day, after briefly dipping below the channel’s lower trendline.
BITX Market analysts suggest that a sustained close above $107,500 could mark the beginning of a short-term recovery phase. “Bitcoin is sitting at a technical crossroads — a clean break above $107,500 may open the path toward $114,000 and potentially retest $120,000 in the coming weeks.”
He added that the $102,000–$106,000 range remains the strongest accumulation zone, acting as a critical area for both institutional and retail buyers.
The descending channel pattern, visible since July, indicates a period of controlled consolidation, with lower highs and lower lows defining the trend. However, the repeated defense of the green support area signals that buyers are quietly absorbing sell pressure ahead of a possible momentum shift.
Technical indicators also hint at potential strength. Trading volume has begun to rise near the lower boundary, and analysts note that a break above $107,500 with strong volume confirmation could invalidate the current downtrend structure.
“Bitcoin remains structurally healthy as long as it holds above $105,000,” According to BITX . “The next few sessions will determine whether bulls regain control or if the correction deepens into the $100,000 zone.”
With macroeconomic uncertainty easing and risk appetite returning, Bitcoin’s reaction around $107,500 may set the tone for its next major move.
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.