Bitcoin Bounce Meets Resistance as Analysts Warn of Another Drop

Bitcoin Analysis

Bitcoin Bounce Meets Resistance as Analysts Warn of Another Drop

Bitcoin attempted a recovery mid-week after touching the lowest levels in November, climbing back toward the $87,000 region after days of heavy selling pressure.

Key Takeaways

  • Bitcoin rebounds toward $87,000 after hitting November lows, but trend remains technically bearish.
  • RSI and MACD show early signs of relief, though price still trades below resistance.
  • Bearish flag pattern could open the door to a potential retest of the $79,000 area if confirmed.
  • Bitcoin has decoupled sharply from MAG7 stocks, adding another layer of pressure to the crypto narrative.

The move brought a brief sigh of relief across the market, yet technical and on-chain signals indicate that buyers still have a difficult battle ahead before momentum can truly shift.

The 4-hour chart shows the bounce emerging from oversold conditions, with the Relative Strength Index (RSI) lifting from the low 30s into the neutral zone. At the same time, the MACD histogram flipped green for the first time since last week, signaling that bearish momentum is easing. However, price continues to trade below key trendline resistance, meaning the rebound is still fragile rather than a confirmed reversal.

While some traders believe the market has already found its floor, others are preparing for one more leg downward before stronger demand returns.

Analysts Split on the Next Direction

Market strategist Ali flagged the current pattern as a potential bearish flag on the lower timeframes. If confirmed, he argues that Bitcoin could retest the $79,000 zone, which aligns with the next major liquidity pocket below recent lows.

Ali also pointed to rising sell-side risk, noting that the indicator has started climbing again — a historical warning sign during periods when investors begin realizing profits aggressively rather than absorbing dips.

Not everyone shares that pessimistic view. Trader Michaël van de Poppe highlighted that Bitcoin’s recent rebound appears constructive if the price can stabilize, consolidate, and then attack nearby resistance levels over the coming sessions. In his outlook, the focus is on securing a base first before expecting any real upside continuation.

Disconnect From Tech Stocks Adds to Uncertainty

Another detail catching market attention is Bitcoin’s widening divergence from the MAG7 tech stocks since the October 10 liquidation event. While major AI-driven tech names continued to perform, Bitcoin sharply decoupled downward, suggesting that macro enthusiasm alone isn’t enough to pull crypto higher in the short term.

Bigger Picture: A Market Searching for Direction

Whether the next decisive move is upward or downward will likely depend on:

  • Whether Bitcoin can reclaim and hold above short-term resistance
  • Whether selling pressure continues to rise on-chain
  • Whether institutional flows return before year-end

In the meantime, volatility remains the theme. Traders are preparing for a tight battle between dip-buyers defending long-term structure and short-term speculators capitalizing on uncertainty.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

Source: https://coindoo.com/market/bitcoin-bounce-meets-resistance-as-analysts-warn-of-another-drop/