Bitcoin Price Bounces Off Key Support, But Momentum Remains Uncertain

Bitcoin (BTC) staged a sharp rebound after touching the 50-day Exponential Moving Average (EMA), surging from $102,816 to nearly $105,000. This swift reversal followed a steep sell-off triggered by a major liquidation event, wiping out overleveraged positions across the board. The bounce from the 50 EMA suggests strong dip-buying interest—likely fueled by both retail traders and algorithmic activity reacting to key technical levels.

Despite the recovery, the lack of volume accompanying the move raises concerns. A robust bounce typically sees volume surge in tandem, but in this case, descending volume hints at weak conviction among bulls. While the Relative Strength Index (RSI) sits at 53.75—still far from overbought territory—it’s notably lower than during Bitcoin’s previous test of its $112,000 all-time high earlier this month.

Traders remain cautious, with $112,000 still acting as a major psychological resistance. Without a strong catalyst, a retest of that level may take time. For now, maintaining support above the 50-day EMA (around $103,000) is critical. A drop below $102,000 could shift sentiment, with the 100-day EMA near $98,000 serving as the next significant support zone.

In the short term, Bitcoin bulls still have the edge if current levels hold. However, the market may need a fresh trigger to sustain momentum and challenge the all-time high again. Until then, traders are advised to watch volume closely, as it remains the missing ingredient in confirming a full trend reversal.