Having risen out of a double bottom and a retest of the bull market trendline, the $BTC price put on around $2,000 in a relatively short amount of time. However, the rally is faltering. Can t
Having risen out of a double bottom and a retest of the bull market trendline, the $BTC price put on around $2,000 in a relatively short amount of time. However, the rally is faltering. Can the bulls at least hold on to a good part of the gains so far, or will the bears bring the price back down to earth?
Source: TradingView
One important thing to note when looking at the short-term time frame chart is that while the the price action is making a series of higher lows, no doubt due to the influence of the bull market trendline, a series of lower highs is pushing the price towards another decision - whether to break out higher, or to break down below the bull market trendline.
Currently, the $BTC price is quite overbought on most of the shorter term Stochastic RSIs. Therefore, going higher from here, although perfectly possible, would not be sustainable for very long. Sideways and probably downward for the next couple of days or so would make sense, with another higher low a decent probability.
Source: TradingView
The daily chart has a red rectangle added to it which contains the entirety of this bear market bottom so far (assuming the bottom has already been made). Although there are three periods of decent up and down movement, in general, the $BTC price can be said to have just chopped sideways.
The box has been drawn further out into the end of August, where the current down-sloping trendline will meet the bull market up-trendline. A big up or down breakout could take place from now until that particular triangle ends.
If the breakout is to the upside, the $65,600 resistance level can be attempted yet again. If the break is to the downside, this could be problematic as falling and taking hold below the bull market trendline could lead to much lower prices and even the possibility of a new bear market bottom, especially if the US stock market also starts to fail.
Source: TradingView
If one takes the best fit bull market trendline in the monthly time frame and copies that trendline, dragging it to the top of the 2021 bull market, it can be seen that this trendline also corresponds with the candle bodies and wicks that went into the top of the 2025 bull market. This points to strength in these parallel lines.
The huge 4-sided structure in the chart above contains the entirety of the last bull market which stretched from Q3 2022 up to the Q3 2025 top, and also the whole (potentially) of this current bear market. One candle has its entire body outside of this structure and that is the current monthly candle. If the $BTC price can stay above the bull and bear market trendlines, it may be up from here.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
