Bitcoin’s 4% Bounce Tests Key Resistance After Weeks of Weakness
Bitcoin recorded a roughly 4% gain over the past 24 hours, offering a welcome break from the broader slump that has weighed on the crypto market.
The move has lifted sentiment slightly, but the daily BTC chart still suggests the asset is navigating a fragile recovery rather than a full trend reversal.
Recent price action shows Bitcoin holding above a key support band after several sessions of downward pressure. Buyers stepped in near the lower support zones, helping the market stabilize and push higher. This type of rebound often signals that sellers are beginning to lose control, but confirmation of a sustained recovery still depends on how the crypto’s price reacts at the next resistance levels.
Bitcoin’s Trend Structure Still Favors the Bears
Despite the latest bounce, the broader trend remains tilted to the downside. The price continues to trade below both the short-term and medium-term exponential moving averages, which indicates that bearish structure still dominates the daily timeframe.
BTC daily chart (Source: TradingView)
However, the distance between BTC’s current price and the shorter-term average has begun to narrow.
That suggests that downward momentum is losing strength, and the market could be transitioning from a decline into a consolidation or relief rally phase. A decisive push above the nearest resistance zone would be needed to shift the structure toward a more bullish outlook.
Momentum Signals Hint at a Possible Relief Phase
Momentum indicators are beginning to show early signs of stabilization.
The Relative Strength Index recently dipped into oversold territory before turning slightly higher, which suggests that selling pressure may be easing. Moves like this often precede short-term recoveries or sideways ranges as the market searches for direction.
The MACD remains in negative territory, confirming that the broader trend has not yet flipped bullish. However, the shrinking histogram shows that bearish momentum is weakening. This type of structure typically appears when a downtrend is losing strength and approaching a potential turning point.
Taken together, those signals point to a market that is attempting to recover, but has not yet produced enough confirmation to signal a full bullish reversal.
Key Levels to Watch in the Coming Sessions
The immediate resistance zone sits near $72,736. This level represents the first major test for the recent bounce. A strong daily close above this area would indicate that buyers are regaining control and could open the path toward the higher resistance zones near $85,276 and $86,845.
Those upper levels represent major supply zones, where profit-taking and renewed selling pressure could emerge if the price reaches them.
On the downside, the first key support remains near $67,850. This area has already acted as a defensive zone for buyers. A breakdown below it could expose the next support around $66,668. If bearish pressure intensifies further, the deeper support near $62,909 becomes the next major target.
Order Book Shows Short-Term Battle Between Buyers and Sellers
Order book data reveals a cluster of bid walls just below the current price, indicating that buyers are attempting to defend the immediate range. However, these support walls are relatively modest in size, suggesting they could be absorbed if selling pressure increases.
Above the current price, a larger concentration of ask walls is forming a short-term ceiling. This indicates that sellers are actively defending the upper range. If bulls manage to clear this supply, the market could move incrementally higher toward the next resistance levels.
This setup points to a short-term tug-of-war, with neither side having full control of the market yet.
Potential Trade Scenarios for Bulls and Bears
For bullish traders, a holding pattern above the $67,850 support combined with a push toward the $72,736 resistance could signal the start of a recovery phase.
A confirmed breakout above that resistance would strengthen the bullish case and open the path toward higher resistance zones, which could serve as potential profit-taking areas.
For bearish setups, failure to sustain the recent bounce would be the key trigger. A break below the $67,850 support could attract renewed selling pressure, with the next downside targets sitting near $66,668 and $62,909.
BTC Price at a Technical Crossroads
The daily chart currently reflects a market in transition.
The 4% rebound suggests that the intensity of the sell-off is fading, but the broader structure remains under bearish influence. Bitcoin is now approaching a critical decision zone, where holding support could lead to a recovery phase, while losing key levels could extend the correction.
The next few daily closes around the $67,850 support and $72,736 resistance are likely to determine the short-term direction for the world’s largest cryptocurrency.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
