The broader cryptocurrency market is experiencing a wave of retracement following a recent surge that pushed Bitcoin (BTC) to a local high of $94,477. Since then, BTC has cooled down by more than 2.5%, slipping into the $90K zone. However, beneath this short-term weakness, the chart suggests a different narrative that could favor a potential rebound if buyers successfully defend a key support level.
Ascending Triangle Pattern in Play
On the 4-hour chart, Bitcoin is currently forming a classic ascending triangle pattern, which is generally associated with bullish continuation phases. The price action has been characterized by steadily higher lows, while repeatedly testing the horizontal resistance established around $94,500.
This morning's decline brought BTC towards $89,405, testing the rising trendline that has served as a reliable support base throughout late November and early December. This level is critically important. A successful rebound from this point would confirm that buyers are actively defending the structure, thereby maintaining bullish momentum.
Chart Signals and Future Outlook
If Bitcoin continues to respect the ascending trendline in the $89K–$90K range, the probability of another move towards the $94,500 resistance level increases significantly. This region remains a major ceiling, and the 250-period moving average, currently situated around $95,463, adds an additional layer of resistance.
A decisive breakout above both the horizontal resistance and the 250 MA would signify the completion of the ascending triangle pattern, potentially triggering the next upward price movement.
Based on the measured move projection derived from the triangle's dimensions, the breakout target is estimated to be approximately $108,000. This target aligns with the highlighted extension zone on the chart and represents a potential upside of close to 19% from current price levels.
For the immediate future, market participants are closely watching the rising trendline. As long as Bitcoin maintains this support level and continues to print higher lows, the broader technical setup favors bullish continuation rather than a deeper price decline.