Bitcoin rebounded from a sharp drop caused by the Bybit hack, indicating strong buyer interest.
Bitcoin's Price Action Shows Key Support Retest
Bitcoin was in a downtrend before consolidating near crucial support, marking lower highs with a descending trendline. Eventually, a breakout led to a 3.52% gain. Resistance at $98,757 halted further upside. The recent sharp move downward tested the 0.786 Fibonacci level near $93,632.80 before buyers stepped in, triggering a rebound.
Market Volatility and Future Projections
The latest pullback brought Bitcoin back to the 0.618 retracement level. A bearish reaction signaled uncertainty in market direction. Bitcoin needs to hold above $95,000 to maintain its bullish structure. Failing this could drive prices toward the previous liquidity zone near $94,000. Fibonacci levels play a crucial role, with sellers active at resistance and buyers defending support.
Market Structure and Trading Behavior
Candlestick formations reveal a mix of bullish and bearish reactions. Long wicks indicate strong price rejections at key levels. Bitcoin's next move might shape the short-term trend, as lack of volume data makes it hard to gauge market strength. However, price action suggests participation at critical levels. The market remains reactive to Fibonacci's support and resistance, with buyers and sellers vying for control.
Bitcoin continues to show strong buyer interest by holding critical support levels, potentially influencing its future market movement.
