BTC price action shows Bitcoin might be on the verge of another drop below the $100,000 mark. On the daily chart, Bitcoin is moving inside a descending broadening wedge pattern. This means the price is trading between two downward-sloping trendlines that are gradually getting wider apart.
Each time BTC hits the top of this channel, it faces rejection and moves lower, creating a series of lower highs. At the same time, the price keeps bouncing off the lower boundary but with lower lows, showing weakness.
Currently, BTC price is hovering around $106,000 after failing to break above the upper trendline once again. The chart suggests that this rejection could trigger a new wave of selling pressure, with a potential drop of about 7.9% from the current level. That would put the BTC price near the $97,600 area, which is shown on the chart as the next significant support.
The upper boundary of the channel has turned into a strong resistance zone. This resistance has kept Bitcoin from breaking out higher several times since mid-May. Each failed attempt at a breakout has resulted in sharp declines, reinforcing the bearish sentiment in the market. As long as Bitcoin stays trapped below this resistance, the bias remains bearish in the short term.
Bitcoin’s Next Major Support Could Be Tested Soon
The chart highlights a key level around $97,600, which is where the price could find its next significant support. A bounce from this area could set the stage for another attempt to move higher, but a break below it could open the door for a deeper correction.
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Looking at the overall structure, Bitcoin’s momentum appears to be weakening. The repeated rejections at the descending trendline and the lower highs on each rally indicate sellers are still in control. Until BTC price manages to break above this descending resistance with strong volume, the risk of another dip below $100,000 remains high.
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