Bitcoin Price Analysis: Uncertainty Remains as BTC Hangs at Important Support Levels

Bitcoin is attempting a recovery after last week’s sharp correction, but the market remains at a major decision ￰0￱ the price has bounced, the broader sentiment remains ￰1￱ key question is whether this bounce is a real reversal or just a temporary relief before another leg ￰2￱ Analysis By Shayan The Daily Chart On the daily chart, BTC found support and bounced off the 200-day moving average around $108K. This area has held as strong demand in previous corrections, and used to act as a base for the latest bullish move in September and early October. However, the asset still hasn’t broken back above the dotted midline of the channel or the 100-day MA, both located around the $115K ￰3￱ we see a daily close above these two resistance elements, the buyers cannot regain full ￰4￱ 4-Hour Chart On the 4H timeframe, BTC is testing the descending trendline from the recent high and is currently hovering around the $111K ￰5￱ structure is showing a potential breakout, but the price needs to close above the $112K area to confirm a shift in short-term ￰6￱ RSI is also pushing toward 60, suggesting growing bullish pressure but not yet ￰7￱ case the descending trendline breaks to the upside, the price will likely target the $116K resistance zone in the upcoming ￰8￱ the other hand, a failed breakout would probably lead to a deeper decline toward the critical $100K demand ￰9￱ Analysis Open Interest Analyzing the futures market sentiment, open interest is forming a base around 35 billion after a sharp flush, indicating that while some traders are stepping back into leveraged positions, the overall market sentiment is still ￰10￱ the open interest still relatively high compared to recent historical levels, the risk of another cascade liquidation remains, especially if the market breaks below the mentioned resistance ￰11￱ BTC fails to reclaim $115K cleanly, another wave of long liquidations could follow, especially heading into the weekend.