• Bitcoin is trading within a descending channel, forming a bearish flag structure on the daily timeframe.
• Current price sits at $107,552, with key resistance at $108,771 and immediate support at $107,379.
• Repeated rejections near resistance suggest growing potential for a downside move targeting lower channel support.

Bitcoin continues to trade inside a defined bearish-flag formation as shown on the daily chart, maintaining tight price movement within parallel trendlines. The asset’s current price stands at $107,552, reflecting a minor 0.1% increase in the last 24 hours. Despite the slight gain, the structure highlights compression, with price action gravitating toward a critical resistance zone at $108,771. Meanwhile, immediate support rests at $107,379. Price activity suggests narrowing volatility as traders prepare for a potential liquidity event.

Recent daily candles reflect hesitation near the upper boundary of the descending channel. This suggests a temporary rejection and increased probability of downside liquidity hunting. Historically, similar patterns often precede sudden liquidity grabs, frequently targeting overly leveraged long positions. As seen on the visual analysis, a downward arrow points toward the lower boundary of the flag, adding context to possible short-term direction.

Tight Channel Formation Limits Price Breakout Room

Bitcoin’s current trading structure remains confined within a descending channel that has persisted since early June. The upper resistance and lower support lines converge gradually, forming the flag. In this area, Bitcoin has been rejected twice around the $108,700 range. Any efforts at tapping this ceiling have been unsuccessful, and have led to temporary corrections back down into the midrange or support area.

With support at $107,379 still intact, price action shows limited expansion room. However, the existing structure continues to compress. Notably, candles show wicks on both ends, hinting at indecision. This tight price activity maintains Bitcoin within a clearly defined boundary.

Bitcoin Flags Below $108.7K Resistance

The pattern now observed in Bitcoin price action shares traits with a textbook bearish flag. It includes a strong upward pole, followed by a descending channel. The flag structure often represents a consolidation period within a broader trend. In this context, price remains trapped inside the flag, awaiting a directional breakout.

A breakout or breakdown becomes more likely as the asset approaches the channel’s apex. Notably, market participants closely watch this region for increased volatility. Until then, resistance at $108,771 and support at $107,379 remain key reference levels. Market reactions around these points will shape the next short-term move.