Key support zone prevents deeper losses after channel breakdown
Bitcoin (BTC) is currently trading at $109,005, bouncing slightly after testing a major support zone near $108,000. The move comes following a steep pullback from recent highs, as BTC struggles to maintain momentum within a descending channel.
The daily chart shows that Bitcoin has been consolidating inside a falling parallel channel, with consistent lower highs and lower lows since peaking near $122,000 earlier this summer. After weeks of downward pressure, the price has now found a floor at the green demand zone around $108,000–$109,000, which has acted as a critical pivot level since May.
On the downside, a failure to defend this support could expose BTC to deeper corrections toward the $102,000 and $95,000 demand zones, where previous consolidation took place. However, a rebound here could allow buyers to attempt another breakout from the falling channel.
“This zone is crucial for Bitcoin. If bulls defend $108K convincingly, we could see momentum shifting back toward the $115K–$118K resistance area,” BITX technical analyst explained.
Upside resistance remains firm around $115,000–$118,000, followed by the supply zone at $121,500–$122,000, where sellers previously dominated. Breaking through these levels would signal renewed bullish momentum, possibly opening the path toward new highs.
Market experts highlight that volume has remained relatively muted, suggesting traders are cautious ahead of macroeconomic data and broader risk sentiment shifts. “BTC is holding major support, but a lack of strong buying volume raises concerns of a false bounce. Confirmation above $115K would be needed to re-establish bullish structure,” According to BITX strategists .
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.