Bitcoin (BTC) is at a pivotal moment, as the price has just touched a key downtrend line that was established at its all-time high. The big question now is whether Bitcoin can break out of this strong resistance zone, or will it see a correction to lower levels?

Strength Comes From BTC Buying Strategy
On Monday, Michael Saylor and his company made a massive purchase, adding 6,911 BTC worth $584.1 million. The move sent Bitcoin prices soaring, reaching a high of around $88,700. Not only did the move boost Bitcoin, it also brought it closer to a key downtrend line - a barrier that the price has been struggling to overcome since hitting a high of $109,000.

However, is this a sign of a sustained uptrend, or just a short-term recovery before a bearish reversal?

Signals From Technical Charts
On the 4-hour timeframe, Bitcoin is forming an ascending wedge pattern, with higher highs and higher lows. Notably, the most recent high corresponds to the downtrend line, increasing the likelihood of a rejection here. If this happens, Bitcoin could reverse lower towards the bottom of the wedge pattern.

On the other hand, if the bulls can break the current resistance, a fresh attempt to break above the downtrend line could be in store. The short-term resistance is currently located at $87,300. If the bulls succeed in pushing the price above this level and sustaining above the trend line, the next target would be $91,400.

Daily Chart and the Role of RSI
The daily chart shows that the bulls are facing heavy pressure from a strong resistance zone. To confirm the uptrend, the price needs to stay above $87,300 and break the main downtrend line. The relative strength index (RSI) recently crossed its own trendline. If the RSI continues to rise and confirms above this level, it will be a positive signal for a further rally.

Decision Point on the Weekly Chart
On the weekly timeframe, Bitcoin is at a crucial juncture. The long-term downtrend line needs to be broken to confirm a new uptrend. Currently, the price needs to hold above $84,500 this week to create an opportunity to break above the downtrend line. A weekly candle opening above the trendline will be a key signal for further upside.

Additionally, the stochastic RSI indicator on the weekly chart is signaling that a strong bullish momentum could be on the horizon, which will be key if bulls are to push Bitcoin back to higher territory in the coming weeks.

Conclusion
Bitcoin is at a critical juncture with the potential to either break out of the downtrend line or correct lower. The developments in the US stock market and other macroeconomic factors will also play a key role in determining the next trend.

For Bitcoin supporters, the $84,500 level is the level to hold. If it breaks above the current resistance and the downtrend line, Bitcoin could well head higher, with a short-term target of $91,400 and beyond in the near future.