Bitcoin has bounced off the top of a key range as it looks to recover from the global trade war shock this weekend.
The colored channels in the 30-minute chart below have consistently affected Bitcoin’s price over the past 14 months. The current purple channel ranges from $93.7k to $85.7k, with the top of the channel acting as a resistance to further price appreciation.
News of the US crypto reserve saw Bitcoin fly through the purple range and break into the next channel. However, fears of the economic impact of President Trump’s tariff policy saw these gains collapse over the weekend.
With a potential groundbreaking crypto summit at the White House tomorrow, a price increase beyond the bottom of the orange channel at $93.4k would be bullish for Bitcoin.
However, as past performance shows, traders would also be looking for a retest of this level before confirming a continued upward trend.
My price channels were formulated throughout the 2024 bull market and have repeatedly shown themselves as important price points for Bitcoin. While the channels do not predict price movement, they do identify critical supports and resistances.
The channels use Bitcoin leverage liquidation prices, order book limit orders, and traditional technical analysis trends to highlight prices Bitcoin may struggle to surpass. The technical analysis is, however, only relevant to ascertain where traders may be looking to add or remove liquidity rather than predict movements.
Traders can create self-fulfilling prophecies with technical analysis, as traders worldwide come to the same conclusion about what should or should not act as support or resistance. As a result, leverage generally sits around these levels.
Ultimately, if the White House summit reveals actionable Bitcoin policy, we will be looking to see if Bitcoin can break out to the upside, passing $93,000. However, if the summit includes little more than more announcements of future announcements or a combined Bitcoin and altcoin reserve, then we may also be looking for Bitcoin to retain $85,000 or risk a further slide.
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