Bitcoin is rebounding after a sharp sell-off, with analysts highlighting regained support, a filled gap in fair value and a looming disequilibrium zone that could determine the next big move.
Summary
- Crypto Patel says bitcoin has filled a gap in fair value, tapped into a bearish order block and could potentially move into a higher imbalance zone before a deeper correction takes place.
- A sustained close above an area of higher resistance would negate the current bearish structure and could trigger a new all-time high trend, according to Patel.
- Analyst boss notes that bitcoin has defended local support, but warns that without stronger volume and momentum confirmation, the rebound risks being a dead-cat bounce.
Bitcoin has shown signs of strength after a sharp decline, with the cryptocurrency regaining key support levels according to market analysts.
Crypto analyst Crypto Patel stated in a recent market update that Bitcoin (BTC) has completed a technical move by filling the Fair Value Gap (FVG) and reaching the Bearish Order Block as previously projected. Traders positioning themselves for an upside move likely had a long setup, Patel noted.
Analysts are flipping the script on BTC above $90,000
The focus has shifted to Bitcoin’s next big target, with a highlighted FVG representing the upcoming high-timeframe imbalance zone, Patel said. The analyst expects Bitcoin to move toward that zone before any significant corrective move occurs, which aligns with the macro outlook that anticipates an upward move in that region before momentum weakens.
Patel outlined a clear debunking point for the bearish bias, stating that a sustained high timeframe close to a significantly higher level would negate the existing bearish market structure. According to the analyst, such a breakout would mark the beginning of a new bullish phase for Bitcoin, potentially paving the way for a new all-time high trend.
According to analyst The Boss, Bitcoin’s recent price action is showing early signs of strength. After the sharp decline, Bitcoin responded to local support and rose above a key support level, indicating renewed buyer confidence. The chart reflects a stable support zone that can withstand downside pressure, according to The Boss.
The recovery appears to have been driven in part by improving macro sentiment, including softer expectations around Federal Reserve tightening, a rise in overall risk appetite and a shift toward risky assets, The Boss said.
From a technical perspective, The Boss noted that Bitcoin must remain above the support range to form a meaningful upside wave. However, the analyst cautioned that without clear confirmation from momentum indicators and continued trading volume, the current move could be limited. The possibility of a dead-cat bounce remains after the aggressive sell-off, according to The Boss.
