Bitcoin traders flag bullish checkmate setup near $76,000

Bitcoin is trading at $75,865, down 0.41% on the day, as crypto analysts identify a potential bullish checkmate setup on the 4-hour chart and the reclamation of a nine-year trendline.

The asset is currently contained within a tight range between $75,645 and $75,979, representing a 0.4% daily range. This compression follows a volatile week in which Bitcoin was pushed back to the $76,000 level by an AI-driven sell-off. Over the past week, Bitcoin is down 3.2%, and it has declined 7.2% over the past month.

4-Hour Chart Compression

Crypto trader Cheds Trading shared a bullish assessment on X, highlighting a specific pattern on Bitcoin’s 4-hour chart. The chart displays a large red capitulation candle that erased the early-November rally. Following this drop, a series of small-bodied candles have moved sideways near the lower Bollinger Band.

According to the analysis, selling momentum has faded, volume has decreased, and price has ceased making meaningful new lows. This type of compression after a sharp decline often indicates that sellers are exhausting their pressure. If buyers enter the market, the tight range could resolve with a sharp move to the upside.

Short-term indicators support this view. On the hourly chart, the technical summary reads Buy, with Strong Buy indicators showing seven buy signals against one sell signal.

Nine-Year Trendline Reclaimed

Part-Time Trader posted on X that Bitcoin has reclaimed a nine-year trendline he has been tracking for months. This trendline connects Bitcoin’s major cycle lows, including the 2018-2019 bottom, the March 2020 crash, and the late-2022 bear market low. The trader stated that this reclamation is one of the reasons he has flipped bullish on crypto.

While the analyst’s chart projects a fresh leg higher toward new all-time highs, he noted that he does not expect the rally to last indefinitely. He anticipates that the rally will ultimately disappoint, with altcoins outperforming and Bitcoin collapsing when the global debt bubble pops. For now, however, holding above this long-term support line keeps the bullish structure intact.

Technical signals vary across different timeframes. The 30-minute chart shows a Strong Buy signal, while the hourly chart indicates a Buy. Conversely, the 5-hour and daily charts display Strong Sell signals, and the weekly and monthly charts remain Neutral.

On the hourly chart, the RSI is at 49.4, placing it in neutral territory. The CCI is at 109 and the Williams %R is at -28, both flashing buy signals. The Stochastic RSI has climbed to 80.4, indicating overbought conditions, while the MACD is slightly negative at -32. The ADX is at 21, confirming that no strong trend is currently in place, and the ATR is at 153, pointing to low volatility.

Bitcoin is trading directly on its short-term moving averages. The hourly 5, 10, and 20-period moving averages sit between $75,811 and $75,864, providing immediate support. The first overhead hurdle is the hourly 50-period EMA near $76,108. Above that level, the 100 and 200-period moving averages form a key resistance zone between $76,647 and $77,410.

A clean break above $77,400 would confirm the checkmate setup identified by Cheds Trading and open the path toward $78,500 and the $80,000 to $82,000 range. On the downside, classic pivot supports are located at $75,859, $75,756, and $75,696. A break below $75,000 would expose the $74,000 liquidity zone and bring the nine-year trendline back into focus.

Bitcoin remains down 25.8% over the past year, with a 52-week range spanning from $57,833 to $107,461. However, the asset is up 16.8% over the past three months, indicating that the medium-term trend remains intact.