The Bitcoin price has been under pressure, struggling to regain highs above $100,000. Currently, it is retesting a critical support level in an Ascending Channel. Analysts believe a recovery could push the price toward $110,000 if this support holds.
Bitcoin’s Ascending Channel Explained
Crypto analyst Trader Tardigrade recently shared a chart highlighting Bitcoin’s price action within an Ascending Channel. Despite a sharp drop below $95,000, the channel remains intact. The analyst identified a “False Break,” where Bitcoin briefly dipped below the lower support line before reclaiming it.
This False Break indicates that the bearish trend may not persist, as Bitcoin has since rebounded to retest the support line. According to Trader Tardigrade, holding this level is crucial for initiating a recovery.
Is $110K the Next Bullish Target?
If Bitcoin maintains its position within the channel, its next potential move could be toward the upper resistance line. This line ranges between $110,000 and $112,000, offering a bullish target for the cryptocurrency.
Breaking above this resistance could further confirm a bullish momentum, potentially setting the stage for Bitcoin to retest its all-time high.
Bearish Sentiment and Alternative Scenarios
While some analysts are optimistic, others caution that Bitcoin’s price may face more declines. Titan of Crypto, another prominent analyst, predicts a drop to $87,000 as the next support level. This dip could bring “maximum pain” to investors but also lay a foundation for a stronger recovery.
Titan emphasizes the unpredictable nature of the crypto market. Despite short-term bearish trends, he remains confident in Bitcoin’s long-term potential, forecasting a rally to $110,000 as inevitable.
Key Takeaways
- Bitcoin is testing a crucial support level in an Ascending Channel.
- A recovery could push the price to $110,000–$112,000.
- Analysts highlight the potential for both further declines and long-term rallies.
