Bitcoin Facing Channel Resistance: Another Drop Ahead?

Hello guys!

BTC is currently moving within a descending channel, showing consistent lower highs and lower lows, confirming a short-term bearish structure. The price continues to respect this channel, and until a clear breakout occurs, the downward bias remains intact.

Key Observations:
Two bearish engulfing (Engulfed 1 & Engulfed 2) have marked strong rejections from the upper boundary, reinforcing seller dominance at higher levels.
After the second engulfing, the price rebounded slightly, forming a minor pullback within the channel.
The upper boundary around $122,200–$122,500 is acting as dynamic resistance, aligning with the trendline.

Short-Term Expectation:
BTC could potentially push once more toward the upper boundary of the channel (around $122,200), where sellers may re-enter.
If the resistance holds, a continuation toward the $118,200–$118,300 support zone is expected, which aligns with the lower boundary of the channel and previous reaction levels.

Levels to Watch:
Resistance: $122,200 – $122,500
Support: $118,200 – $118,300
Breakout confirmation: A clean close above $122,500 could invalidate the bearish setup and open the way for a short-term bullish correction.

Bias: Bearish below $122,500