Bitcoin (BTC) is facing renewed short-term selling pressure after being rejected at the upper boundary of a descending channel on the 4-hour chart. The next move will likely be determined by how the price reacts within the liquidity zone between $61,200 and $60,700.
Channel resistance puts short-term downside in focus
Recent price action shows Bitcoin continuing to trade within a descending channel. In its latest attempt to push higher, the price approached the channel’s upper boundary but failed to break through, reversing downward. This pattern confirms the upper band is acting as significant resistance under current market conditions.
According to analyst Ali Charts, the key initial support lies at $59,700, close to the lower end of the channel. Should selling pressure intensify, the next noteworthy support level emerges at $56,550.
Ali Charts observes that unless Bitcoin breaks through the channel’s upper band, the price could retreat towards the middle or lower sections of the channel, with $59,700 coming back into focus as a support level.
Short-term reaction points also include the vicinities of $61,250 and $58,000. However, for a stronger downtrend to take hold, selling must persist. Conversely, if Bitcoin manages to reclaim the top section of the channel and rise above $63,600, this weak outlook could quickly dissipate.
Liquidity zone to determine next direction
Meanwhile, the analyst Minga identifies the $61,200 to $60,700 range as a key liquidity region. Before any new upward move, the price may dip into this zone to absorb liquidity—a typical phenomenon in crypto markets, where intense order flows often precede sharp price reactions and clearer trends.
Glossary: A liquidity zone is a price area where buy and sell orders are heavily concentrated. These zones often see quick price spikes before a clearer direction is established.
This region is important because Bitcoin is still managing to hold just above it. If buyers step in here, the latest pullback could be merely a brief liquidity sweep rather than the start of a deeper downturn.
| Level | Significance |
|---|---|
| $61,200–$60,700 | Primary liquidity and support zone |
| $59,700 | First major downside target in channel structure |
| $59,500 | Primary downside magnet according to Minga |
| $56,550 | Next key support in a deeper pullback |
| $65,700–$67,400 | Potential recovery zone if support holds |
Minga notes that if Bitcoin falls below $60,700, the $59,500 level could become the next major downside target. This area is seen as the last significant support for maintaining bullish momentum.
Minga suggests that a strong reaction from the $61,200–$60,700 or $59,500 zones could keep recovery prospects alive, potentially leading to a renewed test of the $65,700–$67,400 range within the month.
In summary, Bitcoin’s short-term outlook hinges on price responses at these key support zones. If the $61,200–$60,700 area holds, prospects for a rebound improve. Otherwise, the next deep supports at $59,700 and $56,550 could soon come into play.
