Trading close to notable resistance levels and suggesting a possible market change, Bitcoin is trying to break out of its descending channel. At $65,296.47 during this writing, the crypto shows a 2.09% climb in the last week and a 3.00% increase during the past 24 hours. This price movement puts Bitcoin near important technical levels that might affect its future course.
Descending Channel
Daan Crypto Trades’ chart proves that Bitcoin has been trading inside a declining channel on the daily timestamp. This pattern has contained Bitcoin’s price action for a considerable period, with the cryptocurrency consistently moving between these boundaries.
#Bitcoin Attempting a breakout.
— Daan Crypto Trades (@DaanCrypto) September 26, 2024
Trading right at the Daily 200MA & $65K. Top of the channel still yet to break.
Ideally you'd want a decent $1K-2K above this area and a daily close to really confirm a proper breakout. https://t.co/KFQAqV7JX4 pic.twitter.com/loX05BeHc1
Recent upward momentum has pushed Bitcoin towards the channel’s upper boundary, around $65,065, suggesting an attempt to break out of this pattern. For traders, the declining channel stays a key point since any breach above or below it could affect Bitcoin’s near-term direction.
Criteria for Breakout Confirmation
Per the analyst, Bitcoin has to trade well above the present resistance level if it is to confirm a breakthrough. A definite breakout would be indicated by a movement between $1,000 and $2,000, closing above the $66,000 to $67,000 level. This would indicate a very likely positive trend turn. To confirm the breakthrough, Bitcoin also has to clear the daily 200 Moving Average (MA) close to the $65,000 mark.
Bitcoin Hovers Around $64K, TON Rises Amid Mixed TrendsStill, this breakaway effort seems doubtful. The graph underlines that failing to close above the breakout zone can lead to a price rejection. Under such conditions, Bitcoin may revert to the 200MA or the bottom channel boundary while keeping its declining trend.
Failed Breakout and Potential Risks
Should Bitcoin fail to breakout, it might revert into the declining channel, straightening its current downhill inclination. An unsuccessful effort could lead Bitcoin to test the lower level of the channel once more, underlining the ongoing fight between bullish and bearish market factors.
