Bitcoin (BTC) is pulling back after facing rejection near the top of its 4-hour descending channel, putting key support zones into focus. According to analyst Ali Charts, if sellers maintain control, BTC could decline toward $59,700, with $56,550 as a deeper downside target. Separately, analyst Minga identified a liquidity zone between $61,200 and $60,700 that may act as the first test area, with potential for recovery toward $65,700-$67,400 if buyers defend that range. The pullback follows Bitcoin's recent attempt to break above the upper channel boundary, which has acted as resistance during the latest price structure.
Ali Charts Identifies $59,700 and $56,550 as Downside Targets
Bitcoin is trading inside a descending channel on the 4-hour chart, with price recently pushing into the upper boundary before turning lower. Ali Charts stated that the rejection at the channel top matters because that area has acted as resistance during the latest structure. If BTC fails to break above it, the move could shift back toward the middle or lower part of the channel.
The first downside target sits near $59,700, according to Ali Charts. That level lines up with a lower channel area and could become the next key support if the pullback continues. Below that, the chart points to $56,550 as the next major downside level. A move into that zone would suggest sellers are still controlling the broader short-term structure.
The nearby levels at $61,250 and $58,000 may also act as temporary reaction areas if price starts sliding lower. However, if BTC reclaims the upper channel area and breaks above $63,600, the pullback setup would weaken. For now, holding below the top of the range keeps $59,700 in focus, while a stronger breakdown could open the path toward $56,550.
Minga Maps $61,200-$60,700 Liquidity Zone as Key Support Test
Bitcoin is ranging above a liquidity zone between $61,200 and $60,700, according to analyst Minga. He stated that price may sweep into that area before attempting another move higher. That zone matters because BTC is currently holding just above it. If buyers step in there, the pullback could become a liquidity grab rather than a deeper breakdown.
The setup has a second downside level. If Bitcoin breaks below the grey box marking the $61,200-$60,700 range, Minga expects a move toward $59,500, which he called the main magnet to the downside. He also said this is the last major support zone for bullish continuation, stating that if the bottom is truly in, BTC needs to hold this area on the retest.
A strong reaction from either $61,200-$60,700 or $59,500 would keep the recovery case alive. From there, the chart suggests BTC could push toward $65,700-$67,400 later this month. For now, the pullback is the key test, and Bitcoin needs to defend support before the next upside leg becomes more likely.
FAQ
What are the key downside targets for Bitcoin after the channel rejection?
According to Ali Charts, the first downside target is $59,700, which aligns with a lower area of the descending channel. If that level fails to hold, the next major target is $56,550, suggesting continued seller control in the short-term structure.
What liquidity zone is Minga watching for Bitcoin support?
Minga identified a liquidity zone between $61,200 and $60,700 as the first major area to watch. He stated that price may sweep into that range before attempting another move higher, and if buyers defend it, BTC could later target $65,700-$67,400.
What happens if Bitcoin breaks below $61,200?
If Bitcoin breaks below the $61,200-$60,700 liquidity zone, Minga expects a move toward $59,500, which he called the main downside magnet and the last major support zone for bullish continuation.
