The Bitcoin price appears to be entering a new recovery phase, as the leading cryptocurrency recaptured the $91,000 level after falling by more than 30% from all-time highs last Friday, tumbling to an 8-month low of $80,000.
Critical Bitcoin Price Range
Technical analyst Daan Crypto Trades highlighted on social media site X (formerly Twitter) on Wednesday that the critical region for investors to monitor right now is between the $89,000 and $91,000 range.
He observed that this price level acted as support in late 2024 and early 2025 before becoming a point of resistance during President Donald Trump’s recent tariff negotiations with the world’s top economies, including China.
After breaking out of this zone almost exactly one year ago, the Bitcoin price reached new highs of $109,000 in January, which held until a new uptrend in May of this year resulted in BTC reaching $112,000.
Daan emphasizes that a strong consolidation above these levels could pave the way for a rally toward the $106,000 to $108,000 range. Conversely, if Bitcoin falls back below these levels, it could revisit last week’s low of $80,000, which he identifies as the nearest support.
Bullish Sentiments Amid Caution
Another analyst, BitcoinVector, echoed Daan’s bullish sentiment but cautioned that the market remains in a high-risk environment and that the current momentum has yet to strengthen significantly.
According to BitcoinVector, steady momentum is required for Bitcoin to break out of the compression pattern that has formed since its all-time high.
He laid out the bullish path: first, the Bitcoin price must close within the $89,000 to $90,000 zone, followed by consolidation above this area, and finally, a breakout through the $93,500 to $95,000 compression band.
For this recovery to gain traction, BitcoinVector stressed the importance of a “Risk-Off Signal,” indicating that buyers must begin to overpower sellers while generating momentum. Without such momentum, each upward movement would merely be a tactical reaction rather than indicative of a structural recovery.
Prolonged Bear Market Ahead?
Market analyst Skew provided additional insights, noting that the four-hour chart for Bitcoin appears more constructive for bulls. He pointed to several indicators suggesting upward momentum, including the price being above the four-hour 50 EMA, the RSI remaining above 50, and the Stochastic RSI trending higher.
Skew identifies the $88,000 mark as a crucial “line in the sand,” arguing that a drop below this level would signal weakness and a failed attempt to gain momentum.
Despite the cautious optimism from some analysts, others, like Jacob King, offer a starkly different perspective. He argues that given the Bitcoin price decline from its all-time high in October, it has never experienced such a fall followed by a sustained bull market.
According to King, Bitcoin is now in a bear market that may persist for years, poised to affect the fortunes of countless investors, particularly those heavily leveraged.
As of this writing, the Bitcoin price stands at $91,390, marking a 4% recovery within the last 24 hours. This places the cryptocurrency 27% below its all-time high.
Featured image from DALL-E, chart from TradingView.com