- Bitcoin forms a descending triangle, with resistance at $109,553 and support at $100,746, leading into a breakout point.
- Recent rejections and liquidity grabs display bears capping rallies while bulls defend the $100K level with strong volume.
- Price compression and low volume indicate a potential breakout, as Bitcoin nears the apex of the triangle structure.
Bitcoin is consolidating within a defined descending triangle, trading near $106,800 amid tightening volatility. The 4-hour Binance chart shows price capped by a declining resistance line from the $109,553.14 level. Simultaneously, horizontal support holds firm at $100,746.55. This range has created a narrowing channel, trapping price action in a $9,000 spread. The structure has compressed further since July, with bulls defending support and bears suppressing upward momentum.
Price Rejections and Liquidity Grabs Define Recent Action
Bitcoin has tested the upper descending trendline multiple times in mid-June, each attempt resulting in clear rejection. Price formed three notable lower highs, each highlighting a resistance interaction. The most recent rejection near $108,000 drove the price lower into the current $106,800 zone.
Source: Daan Crypto Trades
Besides rejections, the downside presented two liquidity sweeps below the $100,746.55 level. High-volume spikes followed these sweeps, leading to price rebounds. Significantly, the last drop reached under $98,000 before a strong recovery. This response signaled heavy buyer interest just beneath the current range.
Volume has compressed steadily during each test of resistance, reflecting weakening bullish pressure. However, bears also failed to push past established support. Consequently, price now fluctuates between converging levels, creating a potential breakout setup.
Breakout Likely as Bitcoin Nears Decision Point
The triangle’s structure consists of a declining resistance and flat support. This configuration confirms a descending triangle pattern. Historically, such patterns often precede breakouts following extended consolidation. Significantly, Bitcoin now approaches the pattern’s apex, raising breakout probability.
Besides structural compression, price action shows narrowing momentum. Volume remains lower, reflecting indecision in both directions. However, upcoming moves in July’s early sessions could provide clarity. The beginning of a new quarter often introduces volatility after periods.
Additionally, traders closely watch confirmation zones for validation of breakouts. A move above $109,500 may signal bullish continuation. A breakdown below $100,700 could trigger a bearish extension. Hence, Bitcoin remains trapped between two pivotal technical zones. Bulls and bears now await a clear direction. The chart signals an imminent move as price pressure builds and volatility tightens.
