Bitcoin Forms Descending Triangle Near $110K - Breakout or Breakdown Next?

Bitcoin is sitting inside a decisive structure - a descending triangle - one of the most recognizable but misunderstood patterns in trading. It’s clean, visible, and full of tension.

This setup often favors sellers, but breakouts can still go either way once liquidity builds. Understanding how compression behaves before release is the difference between catching the move or getting caught in it.

The Setup

Price has now tested the same horizontal support level multiple times around the $109K–$110K zone while forming lower highs against a descending trendline. That combination shows classic compression - energy building as volatility contracts.

Each touch of support attracts dip buyers, but it also builds a layer of stop orders beneath the zone. Meanwhile, sellers are stepping down from above, squeezing the range tighter with every move.

The more times a level is tested without breaking, the more liquidity pools around it - buyers who will be forced out on a break and breakout traders waiting to enter. It’s pressure waiting for release.

Two Scenarios to Watch 🔍

🟢 Bullish Path

If BTC breaks above the descending trendline, it clears space for a quick move toward $113K, with $115K as the next key level. Momentum buyers will likely re-enter above resistance, looking to capture the breakout leg.

🔴 Bearish Path

If BTC loses $109K–$110K support, expect stops to trigger fast. Liquidity will thin, and price could accelerate toward $106K, then $104K–$102K if liquidation pressure builds.

👉 You can simulate both breakout and breakdown reactions in our Trading Simulator.

Market Psychology

Descending triangles test patience. Most traders try to front-run the breakout and get trapped inside the noise. Smart traders wait for confirmation.

Every compression phase is about balance between anticipation and exhaustion. The longer the squeeze, the sharper the eventual move. This is where discipline outweighs prediction.

• Impulsive traders jump early and get whipsawed.

• Prepared traders let the market commit first, then follow.

Trading Lesson

Price patterns are just containers for liquidity. What really drives the move is how that liquidity unwinds. A triangle is a visual form of tension - and tension always seeks release.

When the break comes, reaction is usually faster than most traders expect. The best way to trade it is to have your plan written down before it happens.

👉 Learn how to plan and manage volatility releases like this inside our Trading Academy.

Bottom Line

Bitcoin’s descending triangle has narrowed enough that a breakout could occur at any time.

• Above $110K trendline → potential breakout toward $113K–$115K.

• Below $109K → liquidity flush toward $106K–$102K.

This is a high-compression setup - whichever side breaks first, expect speed. Stay patient, stay prepared, and let structure lead the way.

👉 For more intraday structure updates, follow our Daily Insights and refine your reaction playbook using the Trading Simulator.

Disclaimer: This is not financial advice. All information is for simulation and educational purposes only.