Bitcoin (BTC) Price Must Close Above Crucial Support This Week or Risk Another Decline to $55k
Rekt Capital released an analysis of the current price action of Bitcoin (BTC). The weekly timeframe chart reveals a descending channel, characterized by black lines. The upper boundary of this channel has consistently acted as a resistance zone, as indicated by red circles on the chart.
Recently, Bitcoin broke above this channel top, marking a significant breakout. This breakout is now being retested, which means the price is revisiting this previously resistant level to confirm it as new support, represented by a green circle on the chart.
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According to the analyst, for this retest to be deemed successful, Bitcoin price must close above the channel top, the black line, by the end of the week. This closing is critical for validating the breakout and ensuring that the channel top has transitioned from a resistance level to a support level.
During this retest process, minor price dips below the support line, referred to as “downside wicks,” are permissible. However, the key requirement is that Bitcoin must recover and close above this line within the weekly timeframe.
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Show more +Should Bitcoin fail to maintain this support and instead close below the channel top, it would signal a failed retest. In such a case, a further decline could occur, potentially leading to a return to the consolidation zone, which extends to approximately $55,000.
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