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With monthly flow on the verge of establishing a bullish outside candle, and scope for additional outperformance evident on the daily chart to at least US$100,000, a retest of US$88,622 as support could prompt a bullish scenario. Consequently, a possible downside move in the short term might be on the table before targeting US$100,000 as per the red arrows.
H1 Ascending Channel in View
On the H1 chart, price action has been carving out an ascending channel since last week, taken from US$91,713 and US$94,676. This has helped identify slowing momentum, visible through price action, which was unable to reach the upper channel on two occasions (red circles). Decreased appetite for higher levels can also be observed through the RSI trending lower since hitting highs of 82.00.
Given the above chart studies, I feel a breakout beneath the current H1 channel would help reinforce the possibility of downside towards at least H1 support at US$89,677, conveniently sited nearby daily support mentioned above at US$88,622. And, assuming a move lower to the said support area, I would then expect bulls to attempt to make a stand and aim at higher levels: at least US$100,000.
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