Bitcoin attempts to reverse its recent bearish sentiment, bouncing sharply from the $80K–$83K support zone. However, the cryptocurrency faces strong resistance near the $91K–$93K range, which has stalled its upward momentum on the daily chart.
Technically, Bitcoin remains within a descending channel on the daily timeframe, with the 100-day and 200-day moving averages acting as overhead resistance. According to market analyst Shayan, a decisive reclaim of the $103K–$106K zone is needed to invalidate the current bearish trend and signal a stronger upward move.
Key Resistance and Support Levels
- Immediate resistance: $91K–$93K supply block and descending trendline.
- Strong support: $80K–$83K demand zone.
- Macro resistance zone: $103K–$106K area for trend reversal confirmation.
The 4-hour chart highlights a critical decision point. If Bitcoin fails to break above $93K, the price may retrace back toward $86K–$88K, with deeper support at the $80K–$83K zone. On the other hand, closing above $93K could open a path to the $102K–$106K inefficiency zone, where the next major market reaction is expected.
On-Chain Resistance Insights
On-chain data reveals a significant resistance layer slightly above technical levels around $96K–$97K. This is driven by the combined average cost basis of two key investor groups: recent 1-week to 1-month buyers and 6-month to 12-month medium-term holders. Their realized price convergence creates a psychological barrier and substantial sell-side pressure as these cohorts attempt to break even.
Market watchers highlight that to overcome this resistance, Bitcoin requires a firm daily close above $97K. Such a move would suggest that selling pressure from these holders has been absorbed, potentially paving the way for higher price levels.
Currently, Bitcoin stands at a critical crossroads that will determine whether its recent bounce develops into a sustained retracement or a continuation of the broader downtrend. Traders and investors will closely monitor price action around these resistance zones in the coming weeks to gauge the digital asset’s next major directional move.
Read more at: cryptopotato.com
