BTC’s Resistance Rejection and Pullback Potential

Bitcoin’s recent upswing encountered strong supply at a major confluence zone, setting the stage for a corrective phase. Below is a purely technical breakdown of the reversal signals and key levels to watch:

1. Confluent Resistance Barrier
Trend Channel Upper Boundary: BTC respected the descending channel ceiling drawn since November 2024, stalling gains at this dynamic resistance.

Volume Profile Node: The Point of Control for the November–April range coincides exactly with this ceiling, creating a heavy supply node where aggressive selling pressure has materialized.

2. Bearish Shark Harmonic Activation
Harmonic Geometry: The completed Shark pattern (0XA–AB–BC–CD) landed precisely at the resistance confluence, triggering a shift from impulsive to corrective price behavior.

Fibonacci Alignment: The D-leg retracement aligns with the 0.886 extension of the XA leg, reinforcing the pattern’s invalidation zone and confirming the reversal trigger.

3. Critical Downside Pivot
Key Swing Low – $91,648: A close beneath this level on elevated volume would validate the bearish scenario, initiating a cascading stop-run that could drive BTC toward the $86,000 structural support.

Stop-Hunt Risk: Traders who entered near recent highs likely have stops clustered just below the swing low; their liquidation would accelerate downside velocity.

Risk and Trade Management
Entry Zone: Aggressive short entries may be considered on a failure to retake the channel top, with initial targets near the POC support level.

Invalidation Point: A sustained reclaim of the channel resistance and POC region would negate the bearish thesis, shifting bias back to neutral or bullish.

Summary: Bitcoin’s clear rejection at overlapping resistance and the activation of the bearish Shark harmonic signal a high-probability pullback. Confirmation hinges on the swing-low break; otherwise, watch for a potential re-test of the confluence zone.