Bitcoin breakout approaching or descent to $62K?

The Bitcoin price has been crabbing sideways in a channel since early June. Is this grinding price action going to continue – perhaps to a new bear market low, or can the bulls find the strength to escape the channel and rally higher?

More sideways price action to come?

Source: TradingView

As can be seen in the 4-hour chart above, the $BTC price action is close to the top of the descending channel. Already the bulls were able to push the price just through the top of the channel and tag the $65,600 horizontal resistance. Now it remains to be seen whether the price will fall through the $64K support level and head back to the bull market trendline, or if the channel can be broken to the upside.

The Stochastic RSI indicator lines are heading back down in this time frame, as well as in the other shorter term time frames. Therefore, a breakout wouldn’t really be expected to take place just yet. Instead, some more sideways price action is probably the order of the day.

Bull market trendline is key

Source: TradingView

As the $BTC price perhaps swings back down again, it can be seen that the bull market trendline is acting as a major support/resistance line that cuts through the middle of the descending channel. If it continues to hold as support, the price will eventually have no option but to burst through the top of the channel. On the other side of the coin, if the bull market trendline fails, the price is probably going to go back to the bottom of the channel, making a new bear market low as it does so.

In the RSI at the bottom of the chart, the indicator line is still making its way up within a rising wedge formation. The problem here is that this kind of formation is generally bearish. It would be expected that at some point the indicator line breaks down beneath the wedge. This could also coincide with the $BTC price breaking below the bull market trendline.

This said, there is still plenty of runway left within the wedge for the indicator line to continue to trend up. It is just something to keep in mind for a bit further down the line for the price action.

Is one more crash brewing?

Source: TradingView

Looking at the weekly chart, it has to be wondered if the current price action pattern will be the final one for this bear market. If the bottom is already in, a breakout may not be too far away. And if the bear market continues, the descending channel could just guide the $BTC price down to the mid $50K area.

An indicator to keep an eye on, as usual, is the Stochastic RSI. The indicator lines are still nicely above the 20.00 level, but if they roll over, and there might be the first little sign of this, it could signal a descent to the bear market bottom. 

If one looks back to October 2025 and January 2026, the Stochastic RSI indicator lines got to a similar level to where they are currently before turning over and plunging down, bringing the $BTC price crashing down on both occasions. Beware of this possibility.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.