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Bitcoin pullback creates high-probability setup at trendline support

Bitcoin/USD has surrendered nearly $7,000 from its recent peak, but the real story isn't the decline—it's where that decline is stopping. After six consecutive sessions of selling pressure, the world's largest cryptocurrency is now testing a well-established ascending trendline that's been anchoring this rally since late November. And this is where the technical picture gets compelling.

Chart

The trendline in question isn't some arbitrary line I’ve drawn through wishful thinking. It's been validated multiple times over the past two months, connecting a clear series of higher lows that define Bitcoin's structural uptrend. Each touch has resulted in a bounce, and we're now witnessing what could be the next test of this dynamic support level right around $90,000-90,500—a zone I'm marking as a high-probability buy area.

We should take note of the methodical nature of the pullback. Those six numbered candles tell a story of steady, orderly profit-taking rather than panicked selling. There's no capitulation here, no signs of a trend break. Instead, Bitcoin is doing exactly what healthy uptrends do: pulling back to support before potentially resuming higher.

The upside target I’m looking at is $106,018, which represents a solid 16% move from current levels. That's based on the measured move potential if this trendline holds and Bitcoin resumes its established pattern of higher highs.

But let's be clear about the risk. If Bitcoin slices through this trendline with conviction and starts closing daily candles below $89,000, the setup is invalidated. That would suggest the character of this trend has changed, and we'd need to reassess the entire structure.

For traders watching this unfold, the current test of trendline support offers a defined risk-reward scenario. The line in the sand is clear, the target is established, and the trend remains intact (until it isn't). What happens in the next few sessions will tell us whether Bitcoin's buyers still have conviction or if this pullback is just getting started.

Author

Benjamin Pool

Benjamin Pool

Verified Investing

A seasoned financial expert with a passion for empowering individuals to mastering smart money management.

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