- Bitcoin is compressing between the 50-week EMA and a descending trendline, creating tension ahead of a potential major breakout.
- Price action near $84K and the descending triangle’s upper boundary could define the next big move as market indecision persists.
- Consolidation between $72K and $85K continues, with traders eyeing both breakout potential and possible dips below key support levels.
As per Stockmoney Lizards, Bitcoin is once again at a critical junction, with price action consolidating beneath a major descending trendline. Currently trading just above the 50-week Exponential Moving Average (EMA) at around $77,800, Bitcoin shows signs of strength. However, the market remains indecisive. This key zone could either mark the start of a bullish breakout or signal another rejection.
Price is now compressing between the long-standing descending trendline, dating back to December, and the rising weekly EMA. This compression setup often precedes moves. Additionally, this area has previously triggered both breakouts and sharp rejections. Currently, Bitcoin trades at $84,000— a level that has resisted multiple upward attempts in recent months.
Trendline Test and EMA50 Support
The 50-week EMA has historically acted as dynamic support during strong uptrends and as a recovery signal during pullbacks. Presently, Bitcoin hovers above it after bouncing back from a dip below $78,000. This rebound signals renewed buyer interest, but volatility remains a concern. Both bullish and bearish candles continue to alternate, hinting at market uncertainty.
Moreover, the downtrend from the all-time high has formed a descending triangle. This structure includes multiple lower highs and a flat support area. Bitcoin now approaches the upper boundary of this triangle. This resistance overlaps with the broader descending trendline, further emphasizing its importance.
Consolidation Zones and Breakout Potential
Two key accumulation zones appear. The first stretched from August to October 2024. Bitcoin consolidated just below a horizontal resistance before breaking out in late October. That breakout led to a rally toward $115,000. However, this surge was followed by a sharp correction below $80,000.
The second zone is between March and April 2025, priced from $72,000 to $85,000. That zone is for protracted consolidation. Despite a short-term breakdown below the EMA50, Bitcoin recovered that level very soon. Therefore, a confirmed breakout above the downtrend line can signal the start of a new higher leg. Sub-$80K volatility is also likely, though. Thus, traders maintain some cash in hand for probable drops into the $72K–$74K range.
