Bitcoin (BTC) is approaching a critical technical level near the lower boundary of a descending parallel channel, signaling a possible bull bounce, with traders observing the $118K resistance closely.
BTC Within Channel Structure
Bitcoin remains within a well-established descending channel, characterized by repeated lower highs and lows. The current price is around $113,000, historically acting as a launching pad for future price increases.
Bitcoin and $118K Resistance Level
Captain Faibik's analysis suggests a likely bounce from these levels. If momentum builds, BTC could retest the upper resistance around $118,000, which serves as both psychological and technical resistance.
Risk of Support Breakdown
While optimism rises, failing to maintain the lower boundary of the channel could trigger further declines, with the next support observed at $111,000 and then at $108,000.
The upcoming days may prove pivotal, and traders should closely monitor price actions near the channel's edges to decipher Bitcoin's next move.
