‎Bitcoin Faces Temporary Bearish Pressure Amid Overall Bullish Outlook

‎BTCUSD Market Analysis- October 16

‎Bitcoin faces temporary bearish pressure amid its overall bullish outlook, as recent price movements suggest a short-term correction within the broader uptrend.

Bitcoin (BTCUSD) Key Levels

‎Support Levels: $100,500.00, $91,800.00
‎Resistance Levels: $111,100.00, $123,000.00

‎BTCUSD Long-Term Trend: Bullish

‎Bitcoin’s broader market structure remains bullish despite the recent signs of bearish pressure on the daily chart. Price action has declined below the $111,000 supply level, forming a head and shoulders pattern—a classic signal of a potential short-term bearish retracement. This development suggests a temporary correction phase within the prevailing bullish trend.
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‎The current bearish movement is best viewed as a pullback within an overall uptrend, not a full reversal. The $100,500 demand level stands as a crucial support zone; as long as price holds above this level without a daily candle close below it, Bitcoin’s long-term bullish stance remains intact.
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‎Moreover, the Relative Strength Index (RSI) on the daily chart hovers near the oversold region, implying that the selling pressure may soon weaken. This condition increases the probability of a bullish rebound once the current correction phase exhausts, potentially setting the stage for a continuation of the broader upward trajectory.

‎BTCUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, Bitcoin exhibits a more defined bearish structure, offering a closer look at the ongoing correction. The market is currently forming the right shoulder of the head and shoulders pattern, with price attempting to break lower in alignment with short-term bearish momentum.
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‎The 4-hour RSI is trending downward toward the oversold zone, confirming the presence of continued selling activity. Once the RSI reaches extreme lows and price breaks below the previous swing low, a rebound may follow. This potential RSI recovery could lead to a temporary bullish pullback, offering traders opportunities to reposition for the continuation of the mid-term bearish phase within the larger bullish cycle.

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