The recent rebound in Bitcoin has highlighted the essential resistance level that the cryptocurrency must reclaim in order to sustain any bullish momentum. Following a phase where bears pushed the price down to the $80,000 support zone, Bitcoin is now attempting a recovery.
In the past 24 hours, BTC has surged approximately 4.7%, with buyers lifting prices from the mid-$86,000 range back above $91,000. This rise has been driven by expectations of a potential Federal Reserve rate cut, which has reignited interest among investors. Over the past week, Bitcoin has shown minimal change, indicating a V-shaped recovery pattern where initial losses have been largely regained. Despite this, the 14-day performance shows a decline of 11-12%, and the 30-day change indicates a deeper drop of nearly 19.9%.
This latest bounce raises questions about whether Bitcoin is establishing a solid base or merely pausing before another significant move. Analyzing the daily chart via TradingView, it becomes clear that Bitcoin”s price action is normalizing after a sharp decline along the lower Bollinger Band. The candles have bounced off recent lows near the lower band, currently situated around $80,680, and are now aiming towards the 20-day simple moving average, which is near $93,958. This shift indicates a reduction in downside pressure and a preliminary effort to re-enter the middle of the volatility envelope.
The middle band now represents the first significant resistance area, while the lower band remains crucial support should selling pressure return. For Bitcoin to target the upper Bollinger Band at $107,233, it must secure a decisive daily close above this middle band. The Chande Momentum Oscillator corroborates the improving yet still fragile conditions, presently sitting near -6.13, having risen from deeper negative levels but not yet crossing into positive territory. This suggests that while bearish momentum is diminishing, bullish control remains tenuous.
If Bitcoin manages to close above the mid-Bollinger band with the Chande Momentum Oscillator moving above zero, it would bolster the argument for a more extensive recovery towards the upper band. On a shorter timeframe, Bitcoin”s 4-hour chart displays a descending broadening wedge pattern. Analyst Captain Faibik posits that BTC may have already established a floor around the $80,500 mark, but upward momentum will strengthen only if buyers can push prices back toward the upper boundary of this wedge.
Faibik emphasizes the $100,000 threshold as a pivotal resistance level, asserting that Bitcoin bulls must reclaim this barrier to regain robust bullish momentum. Such a breakthrough, he suggests, could set the stage for a sustained rally in December if confirmed.
