Bitcoin price analysis with this support test coming soon

Bitcoin Analysis: Navigating the Key Levels and Patterns

As the year comes to a close, Bitcoin's price action is giving a mixed, bearish statement in the long term. Traders and investors are closely monitoring critical levels and chart patterns to anticipate Bitcoin's next significant move. Below, we examine the key factors shaping the current landscape. 📊🔧🕵️

Key Levels and Patterns on BTCUSD Daily Chart

1. Donchian Channel base at $100,241:

   • The orange price label at $100,241 marks the base of the Donchian channel on the daily chart. 💡📊🌍

   • On December 26, Bitcoin's high reached this point when it came down from its recent low of $92,118. However, it failed to reach the base, indicating a bearish suggestion. This indicates a lack of supportive movement after the sharp decline from the all-time high of $108,364 on December 17th. 🔴📈🔧

2. The next level of Bitcoin Test Aid at $92,118:

   • The $92,118 level, which marked the low on December 20, remains a crucial support. 🔲🔷📉

   • While the price was approaching this level on December 23, it formed a higher low, suggesting buyer activity. However, the continued decline suggests that this support is likely to be retested in the short term. ⚖️📉🕌

3. Bearish Pitchfork Formation:

   • A black pitchfork acts as a down channel. Although it is not a classic bear channel due to the lack of two high touch points, the pitchfork effectively frames the price action. 🔻🔳🔄

   • Price returned not only to the base of the Donchian channel but also to reconfirm the central line of this pitchfork. Such retests are often seen as potential conditions for further downside, increasing bearish pressure. 🔽🔴🌐

4. EMA20 is going down and at $97,149:

   • The black line represents the 20-day moving average (EMA), currently going down which is bearish. The Bitcoin bulls who want to regain the 100k mark must first cross the EMA20 daily resistance line!. 📈⬆️⬇️

   • Bitcoin has remained below the EMA20 for three consecutive days, reinforcing the bearish outlook. The five-day decline in the slope of the EMA indicates bearish pressure in the short term. 🔴🕵️📈

Recent Price Action and Bearish Signals

• All-time high rejection: Bitcoin's decline from its all-time high of $108,364 (on December 17) to $92,118 (on December 20) marked a sharp downward trend, indicating strong selling pressure. 📉🔧🔹

• Upper lower shape: Failure to recover the base of the Donchian channel or the EMA20 indicates a lack of buying interest. This low is a major bearish structure that is in line with a broader downtrend. 🔸🕵️📈

• 1.95% down today (December 29): Today's price action has declined by 1.95% so far, bringing Bitcoin closer to the $92,118 support level. A daily close near or below this level would likely increase bearish sentiment. 🔴📉📊

Scenarios that could be ahead

1. Bearish continuation:

   • If Bitcoin breaks the $92,118 support level, further downside could accelerate. Key levels to explore below include $88,500 and possibly $86,000, representing significant psychological and structural supports.

2. Short term reinforcement:

   • Bitcoin could consolidate between $92,118 and $97,149 (the EMA20). Such a move would be linked to a range indicating uncertainty and allowing traders to reassess momentum signals.

3. Bullish Reversal (Low Probability):

   • For a bullish case to gain traction, Bitcoin would need to recover the EMA20 at $97,149 and close above $100,241 (base of the Donchian channel). This would suggest a stronger move or even a reversal to previous highs.

So, Bitcoin is still within the Bearish bias…But… And important support tests Very Close Ahead

Bitcoin's inability to sustain a move above the EMA20 and its failure to touch the base of the Donchian channel indicate continued bearish pressure. The key support at $92,118 is at risk, and a breakdown could lead to significant losses in the short term. While a bullish reversal is still possible, the current indicators suggest that traders should prepare for further downside. 🔴📊⬇️

As always, traders should be cautious and adapt their strategies to market developments. Monitoring volume stats, key support levels, and the broader crypto market environment will be key to navigating Bitcoin's next moves. ⚖️🔧🕵️ Always trade Bitcoin at your own risk.