Bitcoin remains confined within a downward channel, exhibiting minimal directional momentum, while several alternative cryptocurrencies are quietly gaining traction. As the overall market stabilizes, these smaller coins might be signaling early signs of upward movement ahead of Bitcoin’s potential breakout.
Critical Resistance Levels: $90,588 and the Descending Trendline
In a recent analysis by Kamile Uray, the primary focus continues to be on key resistance points identified on the daily chart—specifically at $90,588 and along the descending blue trendline. Unless Bitcoin manages to close above these thresholds, its current downtrend is likely to persist. Any rallies occurring beneath this descending line should be viewed as temporary corrections rather than genuine reversals.
The initial support range to watch during any decline lies between $83,822 and $82,477. Should Bitcoin close below $82,477 on a daily basis, it would confirm continuation of bearish momentum and potentially open a path toward stronger support levels in the zone between $74,496 and $71,237 (highlighted by a blue box). This lower region is considered an important buying area where demand may increase significantly.
A definitive confirmation of trend reversal is essential before anticipating any meaningful upside movement. Once such confirmation occurs, we could see Bitcoin rallying toward that descending trendline again—testing multiple resistance points along its way up.
For an unequivocal bullish turnaround to take hold, Bitcoin must close above $90,588 and break through its descending resistance barrier. A further daily close beyond $94,130 carries even greater significance as it would confirm that this long-term downtrend has been overcome, potentially ushering in sustained upward momentum for BTC.
Lesser Impulse on Lower Time Frames but Overall Structure Remains Intact
The crypto analyst known as The Penguin pointed out that while price action on shorter time frames shows reduced impulsiveness recently, the broader wave count remains unchanged. This suggests recent fluctuations are mostly noise without impacting larger structural patterns—and confidence persists regarding an Elliott Wave leading diagonal formation for wave 1.
If we momentarily set aside Elliott Wave theory and rely purely on conventional technical analysis methods, Bitcoin clearly respects well-defined trading ranges. This makes monitoring moves near the 0.886 retracement level (as marked) crucial since it could serve as an ideal entry point for buyers seeking upside exposure.
Bullish validation will occur if BTC closes firmly above $90,50&;00, invalidating current bearish scenarios.This breakthrough would indicate potential for more sustained gains ahead.
Until then however,
short-term volatility should be regarded simply as normal market noise especially with significant yearly opening levels approaching rapidly.”
The altcoin sector appears buoyant with ongoing positive momentum suggesting room for further gains.
Certain alts like XPL have already begun outperforming which indicates some smaller tokens may start advancing even while BTC consolidates sideways.”
Featured image courtesy Getty Images – – Chart provided by Tradingview.com