Can Bitcoin Sustain Rally After Descending Channel Breakout?
Bitcoin price (BTC) broke out of a long-term descending channel, suggesting a potential market bottom. The Bitcoin price outlook hinges on overcoming the next resistance at $113,500, while short-term support lies at $108,300. Technical indicators, notably the Stochastic RSI on four-hour and weekly charts, warn of possible sideways or downward moves before upward momentum resumes. Renko charts point to room for one or two more red bricks, but a green brick could confirm a new uptrend. On the weekly timeframe, a bullish enveloping candle above support would strengthen upside prospects; a dip to $105,000 remains a bearish scenario before momentum shifts.
Bullish
The breakout from a long-term descending channel indicates a shift from bearish to bullish sentiment for Bitcoin. Historically, channel breakouts have led to sustained rallies once initial resistance is cleared. The $113,500 target aligns with trend confirmation, while supports at $108,300 and $105,000 define risk levels. Renko analysis suggests limited downside before an uptrend resumes, and a weekly enveloping candle above support would add momentum. Short-term volatility is likely as the Stochastic RSI resets, but the overall pattern favors a bullish outlook. In the long term, breaking the descending trendline can attract renewed buying interest and higher price levels.