Bitcoin Eyes Rebound as 26 EMA Support Shows Strength

Bitcoin’s recent price action signals a key moment for traders watching potential trend reversals. After hitting a local high near $110,000, Bitcoin has retraced to around $106,000, testing the 26-day Exponential Moving Average (EMA) at $104,000. This level is acting as potential support, with a recent long-tailed daily candle suggesting renewed buying pressure.

The formation of red candles following the rally reflects typical market cooldown behavior. However, the latest candlestick pattern — resembling a long-tailed doji — hints at a possible reversal. Such patterns often suggest that sellers are losing momentum and buyers are stepping back in to defend critical levels. If the 26 EMA holds, Bitcoin could rebound and retest the $110,000 zone soon, possibly pushing higher.

Key support also lies in the $99,800–$100,000 range. Should the 26 EMA fail, Bitcoin might dip toward the 50 EMA around $95,000, creating a deeper retracement and flushing out short-term holders. This would likely help consolidate a stronger base for another bullish move.

For now, the bullish trend appears intact, and this potential reversal offers hope for further gains. Traders should monitor price behavior and volume closely around the 26 EMA to confirm the pattern’s validity. If momentum builds, Bitcoin could be poised for its next leg upward.