Bitcoin is sitting at a really critical spot right now at $97,192. We’ve got a well-defined descending channel that’s been in play since the peak on January 14th near $98,400.
Here’s what I’m seeing on the chart:
The descending channel in blue shows BTC has been respecting this downtrend pretty consistently. Right now, price is testing the upper resistance of that channel, which makes this a decision point.
Looking at the key levels, we have the current price at $97,192 with a resistance zone between $96,331 and $96,550 highlighted in blue. Below that, there’s a support zone from $94,431 to $95,550 in the brown/orange area. The chart specifically marks $96,331 as “Remove risk & take price” which is the critical management level.
After that sharp drop from over $98,400, we’ve been seeing consolidation with lower highs and lower lows. This is classic bear flag behavior inside the channel.
From a trading perspective, that $96,331 level seems really important. It could be a take-profit area for anyone in short positions, or a level where traders might want to reduce exposure and wait to see what happens next. For bulls, this needs to hold as support.
The things I’m watching closely are whether we can break above the channel resistance with conviction, or if we get rejected here and head down toward that $94,431 level. Volume on any breakout attempt will be key to confirming the move.
The next day or two should tell us a lot about which direction Bitcoin wants to go. Either we break this descending pattern or we continue the correction. Either way, managing risk properly is essential right now.
