Bitcoin Struggles in Descending Channel, Eyes $66K Breakout for Bullish Momentum

• Bitcoin struggles below $66K resistance in a descending channel, with bearish momentum and key support near $58K and $52K.
• RSI and MACD indicators show weakness as Bitcoin trades near $60,000, facing resistance at $64K and possible downside to $58K.
• Ali Martinez highlights the need for Bitcoin to break above $66,000 to reverse its current bearish trend and trigger a potential rally.

According to crypto analyst Ali Martinez, Bitcoin continues to trade within a well-established descending parallel channel, facing both support and resistance challenges. The cryptocurrency’s recent rejection at the upper boundary of this channel suggests further downward movement may be ahead, with potential key support levels of $58,000 or even $52,000 coming into play. The analyst emphasized that a bullish breakout will not occur until Bitcoin clears the $66,000 mark.

Price Action and Channel Dynamics

Bitcoin has been fluctuating within a downward sloping channel, with the price consistently reacting to its upper and lower boundaries. The top of the channel, acting as a resistance zone, is situated between $64,000 and $66,000. Despite multiple attempts to break this upper boundary, Bitcoin has faced rejection, keeping it firmly within the channel. 

Meanwhile, the lower boundary, currently around $56,000, has provided support during several price dips, particularly in late September when the price bounced back after nearing this level. Currently, Bitcoin is trading at $60,921.46, sitting just below the midpoint of the channel.

Indicators Suggest Continued Bearish Momentum

In the short term, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) show continued bearish momentum. The RSI is currently at 46.13, leaning toward the lower side of the neutral range, hinting at weakness in buying interest. 

Similarly, the MACD remains in negative territory, with the MACD line below the signal line, suggesting ongoing selling pressure. The volume levels also reflect moderate activity, indicating that the recent price movements lack substantial support from buyers or sellers.

Potential Scenarios and Critical Levels to Watch

Bitcoin is currently trading at $60,000 level, it faces crucial support at this psychological point. Failure to hold above $60,000 could lead to a retest of the $58,000 support zone, which has served as a critical level in recent weeks. On the upside, Bitcoin must break above the $64,000 resistance for any chance of reversing its current trend and a set up potential rally toward $68,000.