As you can see on the chart, Bitcoin (BTC) is respecting a curve trendline very well. One of the most important observations is that every time Bitcoin tests this curve trendline, it forms an inverted hammer candlestick pattern, leading to a market reversal.
For those familiar with technical analysis, candlestick patterns play a significant role in predicting market movements. The repeated formation of inverted hammers at this trendline has consistently caused the market to reverse. Now, as Bitcoin approaches this trendline again, we’ll watch for the formation of another inverted hammer. If this pattern appears, it could signal another reversal and a potential drop in price.
However, just because the market has failed multiple times at this level doesn’t mean it will fail again. There’s also a strong possibility that Bitcoin could break through this resistance zone. The 91,000–92,000 zone is acting as a key resistance area, and the curve trendline is also providing resistance here.
Two Possible Scenarios
Scenario 1: Breakout Above Resistance
- There’s a high probability that Bitcoin could break the 91,000–92,000 resistance zone.
- If this happens, the next major resistance levels to watch are 94,500 and 98,800.
- After reaching these levels, Bitcoin might pull back, and we’ll analyze the next move in a future update.
- 94,500 and 98,800 are important resistance levels that are defining the current market character. For now, the market remains bearish, but if these levels are broken in the future, we could see the market’s character shift to bullish.
Scenario 2: Reversal at Trendline
- Bitcoin could test the curve trendline and form another inverted hammer pattern, leading to a reversal.
- This would mean the market fails to break the resistance and moves downward again, continuing the previous pattern.
Key Takeaways
Watch for Candlestick Patterns: The formation of an inverted hammer at the trendline could signal a reversal.
Trade Carefully: Be prepared for both scenarios—breakout or reversal—and plan your trades accordingly.
Note
My goal is to simplify the chart and help you understand the price action clearly. I avoid overloading the chart with unnecessary indicators or creating confusion. My analysis focuses on keeping the chart clean and straightforward.
Thank you!
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.
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.