Bitcoin Price Faces Key Resistance Amid Weak Breakout Signal

Bitcoin’s recent price action has many traders eyeing a breakout, but the underlying data paints a less optimistic picture. Currently trading between $107,000 and $108,000, Bitcoin remains capped by a strong descending trendline on the daily chart—one that has consistently rejected upward moves.

At first glance, the chart shows higher lows and a tightening squeeze, suggesting growing bullish pressure. However, the rally appears driven more by short liquidations than fresh capital inflows. This indicates a lack of real conviction from buyers and highlights a tactical rather than structural market shift.

Trading volume remains stagnant, providing little support for a sustainable breakout. Despite support from the 50-day and 100-day exponential moving averages (EMAs), the absence of significant buying interest weakens the bullish case. Without renewed momentum, Bitcoin could fall back toward the $100,000 to $105,000 range.

The current price pattern lacks the fundamentals of a true macro uptrend. Until volume picks up and buyer conviction strengthens, the recent move should be viewed as a short squeeze rather than a legitimate breakout. Traders should remain cautious; chasing this setup without confirmation could prove costly.

Bitcoin may look poised for a move higher, but the market remains indecisive. Unless a surge in demand breaks the downtrend convincingly, the risk of a reversal remains high.