Bitcoin is currently experiencing a corrective trend under a wider ascending channel, with momentum in the short term remaining subdued. Recent trading activity showcases a pivotal moment as buyers strive to stabilize the market close to significant demand regions.

Bitcoin Price Analysis: Daily Overview

On the daily chart, BTC keeps trading inside the larger ascending channel that has characterized the market in the past months. Recently, it retreated from the upper section of the channel at $92K and is now positioned near its lower limit at $86K, a zone noted for strong buyer activity. This area has previously established itself as a crucial demand zone and is presently withstanding selling pressure.

Despite the bullish framework overall, the rebound from this level lacks robust momentum. The lack of strong continuation candles indicates that while buyers are defending support, full control is not yet in sight. As long as prices stay above the channel’s lower edge, the broad trend remains positive. Conversely, slipping below this support might lead Bitcoin to a significant price drop, targeting the next key demand area.

Daily Chart

BTC/USDT 4-Hour Analysis

The four-hour chart displays Bitcoin’s consolidation within a rising wedge structure following the latest sell-off. The price movement appears increasingly compressed, with higher low formations against a resistance barrier. This pattern denotes a stalemate between buyers and sellers rather than distinctly trending behavior.

To shift the market back into a bullish cycle in this timeframe, a decisive break above the wedge’s upper boundary at $98K is essential, ideally supported by heightened volatility and consistent follow-through. Without such a breakout, the current pattern leans towards further consolidation or volatile price movements. Breaking down below the wedge support will shift control back to sellers, raising the likelihood of revisiting lower demand areas.

4-Hour Chart

Market Sentiment Analysis

The Coinbase Premium Index remains in the negative zone, indicating ongoing selling pressure from U.S.-based participants. This consistent negative premium suggests that spot demand on Coinbase is weaker compared to other exchanges, an indication often associated with cautious behavior by institutional investors.

Although the premium has shown slight stabilization, a return to positive territory is yet to materialize. This indicates that large investors are not stepping in aggressively at present levels. As long as the Coinbase Premium Index remains negative, upward movements are more likely to face resistance rather than strengthen into impulsive rallies. A significant recovery in the premium would provide critical confirmation that more robust investors are returning and downside risks are declining.

Premium Index

Disclaimer: The information provided here is opinion-based and should not be interpreted as investment advice. Always perform your own research before making any investment decisions.