Bitcoin is currently trading at a crucial high-timeframe resistance zone, where significant technical confluences are aligning. This area includes structural resistance, volume profile resistance, and key Fibonacci retracement levels. Additionally, a potential bearish Shark Harmonic pattern is forming, which could indicate a sharp corrective move if validated. For Bitcoin to maintain its upward momentum, bulls must break through this resistance quickly to prevent a broader downturn in price.

Key Technical Insights

  • Bitcoin has re-entered a major descending channel, suggesting a possible bearish retest of resistance.
  • A bearish Shark Harmonic pattern is emerging, signaling a potential downside move if price fails to overcome the resistance zone.
  • The $96,400 level represents a critical resistance point that must be decisively broken for a bullish outlook to prevail.

Analyzing Bitcoin’s Price Action

Bitcoin recently broke out of its long-standing descending channel, but the breakout was short-lived. The price quickly fell back into the channel, indicating that the market has accepted the previous range as valid. This movement suggests the current rally might be a bearish retest of resistance, potentially leading to further downside.

The emergence of a Shark Harmonic pattern adds to the bearish sentiment. This harmonic structure is following a textbook formation, with the C-leg forming from a significant swing low (A point) and the price now approaching the D zone—a typical reversal area. If Bitcoin rejects this region, it would confirm the harmonic pattern and trigger downside targets.

Why the $96,400 Level Is Critical

The $96,400 resistance zone holds immense significance for Bitcoin’s price trajectory. This level aligns with the 0.618 Fibonacci retracement, a key point of control on volume profiles, and critical structural resistance. A decisive breakout above this level, supported by strong trading volume, would invalidate the bearish harmonic pattern and potentially ignite a new bullish trend.

However, failure to breach this zone would reinforce the bearish outlook, with sellers likely to dominate the market. In this scenario, Bitcoin could face a sharp pullback, potentially targeting the $60,000 region or even lower.

What to Expect Next

Bitcoin’s immediate future depends on how it reacts to the $96,400 resistance zone. Traders should closely monitor whether bulls can successfully break above this level with strong volume, as this would invalidate the bearish setup and pave the way for higher price targets.

On the other hand, a rejection at this resistance would confirm the bearish Shark Harmonic, increasing the likelihood of a deeper correction. In this case, traders should prepare for heightened volatility and potential declines toward the $60,000 mark or beyond.

Tips for Traders

  • Keep an eye on Bitcoin’s price action around the $96,400 resistance zone.
  • Look for confirmation of a breakout with strong trading volume to validate a bullish trend.
  • If a rejection occurs, consider the implications of the Shark Harmonic and potential downside targets.
  • Manage risk appropriately, as increased volatility is expected in the coming sessions.

The next few days will be pivotal for Bitcoin as it navigates this key resistance zone. Whether the market breaks higher or confirms a bearish reversal, traders should remain vigilant and adapt their strategies accordingly.

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