- Bitcoin rebounds to $87,000 amid growing optimism over a potential US Federal Reserve rate cut.
- BTC briefly reached $88,000 but encountered strong resistance, causing an immediate short-term price retreat.
- Analysts suggest Bitcoin could test $93,000 if the weekly closing price remains above $86,000 level.
Bitcoin and the overall market seem to begin the road towards recovery due to rising hopes of a possible cut in interest rates of the US Federal Reserve in the month of December.
Over the last few hours, the price of Bitcoin has temporarily climbed to $88,000 twice but encountered stiffer resistance at this price point and immediately retreated.
At the time of writing, BTC is trading at the $85,912 level following its recovery from a dip below $82,000 last week due to mounting speculations about a Fed rate cut. However, market observers remain hopeful that the global market has not entered a bear trend yet.
Bitcoin Falls Below Key Support
In a statement posted by the analyst Daan Crypto Trades on Sunday, “Bitcoin has clearly fallen out of the Bull Market Support Band. The fall has also caused the price to create a $20,000 hole to fill to return to support.”
However, Daan thinks the BTC price will soon return to this vital level because “the weekly market structure remains technically sound as long as the April lows are held.” In April, the price of the coin dropped to $75,000 for a brief period, but the current downturn has been steeper than the previous one.
Bitcoin Eyes $93,000 After Weekly Close
Analyst, Rekt Capital, has analyzed the weekly chart and said that if BTC manages to close above the $86,000 mark, it will be able to test $93,000 again since there will be no support and resistance in the middle area. The closing price of the candle has been recorded at $86,820.
Meanwhile, the actions of a BTC wedge breakdown were also noted by the stockmoney lizards. They made this comment regarding the RSI being oversold: “Panic signals look the same as in March and April when this occurred before. The pattern doesn’t care about your narrative. An all-time high followed the previous similar sell-off.”
Also Read | Strategy Plans More Bitcoin Buys, Citing Its 2022 Bear Market Playbook
Bitcoin Bounces but Rally Uncertain
Not everyone is convinced a full rally is underway. Crypto analyst Colin Talks Crypto warned against becoming overly optimistic:
“I wouldn’t term this macro trend bullish and anticipate new record highs at the moment. A bounce was due following such an oversold market,” Colin said. Colin also said that before new record highs can be expected, the Bitcoin price needs to regain significant levels of support far above the existing price levels.
Bitcoin has been gaining momentum over the weekend. This comes as a sign of a possible reversal from the sharp fall it encountered last week.
Also Read | Satoshi Nakamoto BTC Holdings Drop $47 Billion as Bitcoin Hits Seven-Month Low
