- Bitcoin is sitting above a trendline that is pointing up, which could indicate a bullish breakout should resistance be breached.
- The Ichimoku cloud is serving as overhead resistance and capping bullish movement in the short-term.
- Falling below the $103,630 would skew the pattern invalid and turn the sentiment to bearish.
Bitcoin (BTC/USDT) is trading well above a key uptrend line, maintaining precarious hold on short-term support in the mixed direction of markets. The asset just had its price drop by 1.6% to approximately $104,855 at the time of writing. Even while the overall sentiment is bearish, investors are watching keenly to see if the digital asset can hold its bullish pattern or if a bearish breakdown is imminent.
Testing the Trendline: A Critical Moment
The 4-hour chart shows that Bitcoin is rebounding from a well-established ascending trendline that has supported the price since early June. This steepening of support has always served as the foundation of corrective moves in the short-term. The recent rebound off of this trendline indicates that there is potential to remain bullish but at this point, the momentum seems weak.
The rising triangle pattern, typically a bullish continuation pattern, remains intact. While the upper supply zone of the pattern — at about $107,261 — continues to be a lid on rallies. Bitcoin has tested this region a number of times, but has been met with resistance from the sellers every time, creating a zone of firm resistance.
Ichimoku Cloud Resistance Dampens Upside
Also contributing to the cautious perspective is the location of the Ichimoku Cloud. The cloud, a widely used indicator to determine levels of support and resistance, is currently offering a resistance obstacle just above the current price. Bitcoin is still trading below the cloud on this time frame, which means the bullish case is still under pressure.
A successful breakout above both the Ichimoku Cloud and the supply zone would reinforce bullish conviction, potentially opening the door for a rally toward $109,000 and higher. Until then, the cloud’s presence signals that any upside attempts may be short-lived unless volume and momentum improve significantly.
Bitcoin Eyes Breakout Amid Tight Range and Key Support Test
The immediate support level lies around $103,630. Any decline beneath this level, and a verified break beneath the trendline, would probably turn short-term sentiment bearish. In such a scenario, price targets around $101,000 or lower may be on tables, particularly in case the overall market environment is unclear.
The $104,000 to $107,000 trading range of bitcoin over the last 24 hours is representative of a range-bound market as players await clearer direction. The decreasing amplitude within the ascending triangle indicates that a greater move would be in progress, either upward when bulls take charge or down when support breaks.
At the moment, Bitcoin is in a technical crossroads. As the trendline support sticks, the cloud resistance and rejection at the supply zone is indicative of continuing market hesitation.
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