Bitcoin After Setting a New Peak: Two Scenarios That Could Happen

After reaching a new historical peak, the price of Bitcoin quickly adjusted and returned near the price zone before last week's "pump", almost wiping out the entire upward momentum. This has caused the bears (to regain the initiative, as selling pressure has been increasing. Although many investors hope for a swift recovery, analyst Melikatrader has presented two possible scenarios – and both end with a downtrend, returning to the previous local peak zones. Trendline Break Signal – Increased Selling Pressure Analysis shows that Bitcoin has now broken the lower trendline of the price channel. Previously, BTC had maintained within an ascending channel with a series of higher highs – higher lows, indicating that the uptrend was still strong. However, breaking this trendline is the first signal that the bears are gradually gaining dominance, paving the way for increased selling pressure. Two Short-Term Volatility Scenarios From here, the price of Bitcoin can go in one of two directions: Scenario 1: Rejected at the zone $118,000The price may recover and move up to the resistance zone around 118,000 USD.This is considered the supply zone ) supply zone (, where many investors may offload their holdings in large volumes, creating strong selling pressure and pushing the price back down.Scenario 2: Break above $118,000 but fail at $119,700In the case where the price breaks through the first resistance, BTC has the potential to move to the next supply zone just below 119,700 USD.However, the scenario here does not change: large selling pressure will cause the market to reverse, ending the short-term uptrend. The common point of both scenarios: after rising and hitting resistance, the price will face a sharp fall. Price Reduction Target – Where Is the "Landing Point"? According to the analysis, both scenarios share a common key support level: 115,800 USD. This price level once served as a demand zone ) and support during the previous correction. When the price falls to this zone, there is a high chance that buying pressure will return. This could also become a rebound point for a new recovery of Bitcoin. Conclusion Although Bitcoin has just set a new peak, the short-term trend is showing many negative signals as the bears are in control. Both scenarios presented have a common outcome: the price will fall back to the zone of 115,800 USD before it can potentially rebound. Therefore, investors need to be cautious with the retracements, as this could just be a pump (bull trap) before the market turns back down significantly.