Bitcoin Price Eyes Recovery: Key Levels to Watch After Trendline Break

Bitcoin (BTC/USD) 1-Hour Chart Analysis: Reversal in Play or Dead-Cat Bounce?

After experiencing a notable correction, Bitcoin (BTC/USD) appears to be stabilizing within a crucial support zone between $107,755 and $106,936. This area has attracted significant buyer interest in recent hours, hinting at a potential bullish reversal in the short term. With the descending trendline now broken, traders are watching closely for signs of continued upside momentum.

In this article, we’ll break down the 1-hour technical chart setup for BTC/USD, analyze possible bullish and bearish outcomes, and identify key support and resistance levels that could define the next move.

Trendline Break Signals a Shift in Momentum

The recent correction brought Bitcoin down sharply, but it has since found footing near the $107,000 range, a zone that has served as support in past sessions. The descending trendline—which has been acting as a ceiling over the past 24–48 hours—has now been decisively broken, indicating that sellers may be losing control, at least in the short term.

Trendline Analysis:

• Descending trendline break typically indicates buyer strength and a possible shift in trend.

• Momentum indicators like the Relative Strength Index (RSI) have begun to turn up from oversold territory.

• Volume remains moderate but is showing signs of increasing as bulls attempt to reclaim higher ground.

Bullish Scenario: Can Bitcoin Reclaim $110K?

If BTC can hold above $107,755, this would confirm the support zone and potentially pave the way for a bullish continuation.

Short-Term Bullish Targets:

1. $108,788 – First Resistance Zone

   • This level was previously support and now acts as immediate resistance.

   • A confirmed breakout above this point could shift intraday sentiment firmly in favor of the bulls.

2. $109,509 – Target Zone

   • A level that aligns with previous price congestion and Fibonacci extension levels.

   • A move to this area could represent a complete short-term recovery leg from the current bounce.

3. $110,321 – Major Resistance

   • This is the final barrier before BTC can resume its broader bullish trend.

   • A strong breakout above this area could signal a return to bullish control, potentially reigniting momentum toward the mid-May highs.

Key Support Levels: The Line in the Sand

While the current structure supports a short-term bullish view, risk remains. If the support fails to hold, BTC could retrace deeper, putting further pressure on market sentiment.

Watch These Key Support Zones:

• $107,755 – First Support Level

  • A breakdown below this level would invalidate the recent breakout.

  • May trigger a return to the lower support at $106,936.

• $106,936 – Critical Support Zone

  • Last line of defense before broader selling pressure could resume.

  • Below this level, BTC could revisit previous demand zones around $105,000–$104,500, with more pronounced downside risks.

Neutral to Bearish Scenario: Fakeout or Real Reversal?

There is also a risk that this recent breakout is a false signal, commonly referred to as a bull trap. This often occurs when the price briefly breaks resistance before quickly reversing and trapping breakout traders.

Signs of a Bearish Fakeout:

• Price fails to hold above $107,755.

• Volume weakens despite the breakout.

• Momentum indicators roll over near overbought levels without confirmation of trend continuation.

In this scenario, traders should watch for:

• A possible return inside the descending channel.

• Renewed selling pressure targeting $106,936 and lower.

• Breakdown patterns such as bearish engulfing candles, rising wedge formations, or failing retests of broken support.

Technical Indicators to Watch

To confirm a bullish or bearish continuation, keep an eye on the following indicators:

• RSI (Relative Strength Index):

  • A break above 60 would suggest bullish strength.

  • A drop below 40 on the 1H chart would signal weakening momentum.

• MACD (Moving Average Convergence Divergence):

  • A bullish crossover just occurred, supporting the reversal narrative.

  • If the MACD line crosses back below the signal line, the trend may turn back down.

• Volume:

  • Rising volume is needed to validate any move.

  • Low volume on upward moves suggests lack of conviction and possible pullback.

️ Risk Management Tips

As with any trade setup, it’s essential to manage your risk properly:

• Use tight stop-loss orders below the $106,936 level if entering on a long position.

• Consider partial profit-taking at resistance levels such as $108,788 and $109,509.

• Avoid overleveraging, especially in uncertain price action.

Conclusion: What Comes Next for BTC/USD?

Bitcoin’s price action on the 1-hour chart is starting to shift bullishly, thanks to a descending trendline breakout and stabilization at key support. However, the real test lies ahead—can BTC reclaim $108,788 with conviction and push toward $109,509 and beyond?

Until then, traders should remain cautiously optimistic but ready for either scenario. This is a technical turning point, and how BTC reacts in the next few candles will likely define the next 24–48 hours of price action.

Key Levels Recap

LevelTypeSignificance

$110,321	Major Resistance	Breakout target for full bullish reversal
$109,509	Target Zone	Likely next stop if momentum continues
$108,788	First Resistance	Immediate test for bulls
$107,755	Support	Must hold to confirm breakout
$106,936	Critical Support	Breakdown leads to bearish continuation

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a licensed financial advisor before making investment decisions.

Nikolaj Krastev publication: "Bitcoin Price Eyes Recovery: Key Levels to Watch After Trendline Break" was written for 24crypto.news

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