Bitcoin (BTC) recently bounced back from the $100,000 level, raising hopes of a bullish reversal. However, traders remain cautious as this recovery could also be a temporary bull trap. With key resistance looming around $105,000-$106,000, the marketBTC’s next move will be crucial in determining whether BTC can sustain an uptrend or resume its downtrend.
A possible bullish reversal after recovering $102,000
According to Lennaert Snyder, Bitcoin is showing the first signs of a potential bullish reversal. In the after on This recovery comes after a period of weakness, indicating the market may be trying to stabilize before the next big move.
Related reading
Snyder emphasized the importance of maintaining this momentum and establishing a higher low around $101,400, which would push the bullish scenario into a more sustainable rally. Conversely, there is an inability to enforce support This could indicate continued bearish pressure, so this level is critical for gauging market sentiment.
In the meantime, the expert is keeping a close eye on the lower timeframe charts for potential scalp-long opportunities if a reversal occurs near $101,400. This tactical approach allows active traders to take advantage of short-term fluctuations while waiting for confirmation of a broader trend optimistic trend.
The key resistance remains at $104,700, which will be a decisive level for determining the next phase of the move. A successful breakout above this resistance could open the way to $107,500, which would signal that the bulls are regaining control. But since it’s the weekend, Snyder warned about that traders should be prepared for sudden swings or false breakouts as liquidity is typically lower during this period.
Bitcoin regains momentum, but $105,000-$106,000 holds the key
In his last updateMarket expert and investor Ted Pillows noted that Bitcoin briefly fell below the $100,000 mark before bouncing back. The short-lived dip highlights the ongoing uncertainty and tug-of-war between buyers and sellers at key psychological levels.
Related reading
However, Ted warned that this rebound feels like a potential bull trap. Although the price recovered quickly, the underlying momentum could still be in favor of the price bearsThis suggests that traders should remain vigilant before assuming a sustained rise trend.
He emphasized that until Bitcoin can reclaim the $105,000-$106,000 zone, the likelihood of further disadvantage remains higher. Without a confirmed break above this critical resistance area, the market could continue to support levels of $93,394, leaving the short-term outlook skewed towards a possible downtrend.
Featured image from Getty Images, chart from Tradingview.com