Bitcoin Price Prediction: Relief Bounce Or Trap?
The post Bitcoin Price Prediction: Relief Bounce Or Trap? appeared first on Coinpedia Fintech News
Bitcoin is showing early signs of stability after dropping into a key support zone, but analysts say it is still too soon to call a strong reversal.
Bitcoin recently moved down to fill a CME futures gap between roughly $88,250 and $88,735, a level many traders were closely watching. Once the gap was filled, the price bounced, which was widely expected, as CME gaps often act as temporary support.
Why the bounce happened
The market had become oversold across multiple time frames, including the one-hour and four-hour charts. When prices get stretched too far to the downside, short-term buyers often step in, leading to a relief bounce.
That is exactly what happened. Bitcoin reacted positively from the gap area and is now trading slightly above it, holding near Fibonacci support levels.
Despite the bounce, analysts say there is no clear sign of a strong upside reversal yet. Momentum remains weak, and the move higher so far looks corrective rather than the start of a new bullish trend.
From a technical perspective, Bitcoin may still be forming another leg lower unless buyers can show stronger follow-through. A sustained move above key resistance levels would be needed to confirm that a meaningful low is in place.
What levels traders are watching
In the short term, analysts are watching the $88,300 to $88,900 zone as a key area where price action could decide the next move. If Bitcoin holds above this range and pulls back slowly, it could support a larger rebound.
However, as long as Bitcoin stays below roughly $91,680, downside risk remains on the table, and another dip cannot be ruled out.
For now, Bitcoin’s bounce looks like a technical reaction after oversold conditions rather than a clear trend change. Traders are waiting to see how price behaves near resistance before deciding whether the market is ready to move higher or if more downside is still ahead.
In short, Bitcoin has found short-term support, but the market still needs confirmation before calling the next major move.
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