Bitcoin Technical Breakdown Signals Potential Correction

The technical analysis of Bitcoin on a four-hour timeframe indicates that it remains within an upward-sloping channel. Recently, the price reached around 111,850 but could not break the channel's top, encountering selling pressure beforehand. This weakness was confirmed by a breakdown of the channel's midpoint downward. Currently, the price is near the channel's lower boundary. If this level holds or if a false breakout occurs, there is potential for a reversal back to the midpoint or the channel's top. However, given the recent failure to reach the channel's peak during the latest rally, the risk of losing the channel's bottom is significant. A confirmed breakdown below 106,450, the channel's lower boundary, could signal the start of a correction from the current bullish wave, with subsequent support levels acting as targets for this correction, marked in purple on the chart. In summary, the price behavior around the channel's bottom is critical. Holding this zone could favor continued bullish momentum, but losing it would indicate a shift towards a corrective phase. Investors should prioritize risk management and avoid impulsive trades under these conditions.