Bitcoin is showing the first signs of recovery after firmly holding a support zone for a major confluence. The strong reaction from this level suggests that buyers have stepped in to offset the selling pressure. As the market begins to stabilize, attention now turns to whether this defense could mark the start of a broader bullish reversal.
How Bitcoin Defends the Great Confluence Zone
Bitcoin has successfully defended a major confluence zone and is starting to show the first signs of recovery. According to Cryptorphically, after consolidation around the 200-week EMA and the Weekly Fair Value Gap between $70,000 and $76,000, market behavior appears to be shifting from absorption to the early stages of a potential trend reversal.
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From a key level perspective, the recovered support zone is now between $70,500 and $73,900, where buyers have stepped in to stabilize the price. market. On the upside, resistance is between $80,600 and $85,000, which represents the next major hurdle for bulls. However, the bullish outlook would be invalidated if Bitcoin records a weekly close below the $68,000 level.
Recent technical developments also support the improved structure. The latest weekly candle has formed a strong one bullish stance right at the 200-week EMA, indicating that the earlier wave of aggressive selling pressure was absorbed by strong demand. Price has also reclaimed the $73,900 level, effectively turning the former demand zone into an active support area again.
The long lower wicks seen on previous weekly candles further reinforce this image. Rather than random noises, they point to consistent buying interest and institutional accumulation during the pullback. Now that the selling pressure seems to be fading, this is the path of least resistance now appears to have tilted towards the upper limits of the previous range.
BTC breaks out of local compression
Cryptorphic charted the path ahead, pointing out that Bitcoin appears to be breaking the immediate local compression phase. If the price can maintain its strength above the USD 74,000 level, it would support the idea that a base for a higher time frame has already formed. In that scenario, the next major target for bulls would be a move to $80,600, a level that previously served as an indicator. breakdown point.
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Should Bitcoin manage to break past the $85,000 mark, the outlook could shift even more decisively upwards. A break above this resistance is expected to trigger another impulsive move, possibly towards the psychological milestone of $100,000.
From a broader perspective, the bias remains bullish. The recent correction has run its course, while the strong reaction at the 200-week EMA suggests the market is structure has been successfully defended. So the environment continues to favor a long-term strategy of ‘buy the dip’, with the market potentially rewarding those who rallied during the retest of the $70,000 region.
Featured image from Pixabay, chart from Tradingview.com