- Bitcoin reclaims the $82,050–$85,115 zone with a bullish engulfing candle and CME gap fill, signaling strong upward momentum.
- A rounded bottom and bullish RSI divergence challenge the descending trendline, pointing to a potential breakout toward $91K–$94K.
- Shrinking candle wicks and lower volatility highlight market indecision, but a weekly close above $85K may confirm bullish continuation.
Bitcoin continues to show signs of strength after a volatile few months. Recent price action reflects a shift in market sentiment. BTC has reclaimed the crucial range between $82,050 and $85,115. This reclaim came after a sharp rebound from the $76,000 region. The bounce formed a bullish dominating candle, signaling renewed demand and interest.
Besides reclaiming this range, Bitcoin also filled a CME Futures gap from earlier sessions. This movement coincided with a steady push above previous resistances. However, the mid-$85,000 zone presents new challenges. A potential CME Gap could form if Bitcoin closes above this level. Consequently, a short-term pullback for a retest remains likely.
Moreover, the weekly structure confirms this pivot zone’s importance. BTC has tested both ends of the $82,050 to $85,115 range multiple times. However, candles have failed to break decisively in either direction. Recent candle formations show shrinking wicks and shorter bodies, signaling reduced volatility and indecision.
Descending Trendline Meets Rounded Bottom Formation
From mid-January to early April, BTC formed a descending trendline with consistent lower highs and lower lows. However, this bearish structure now faces a challenge. A rounded bottom pattern has emerged since mid-March. This signals a potential trend reversal, supported by increasing price lows.
Additionally, RSI indicators show bullish divergence, reflecting rising buying pressure. While price made lower lows, RSI formed higher lows. This divergence, along with a reading above 46, strengthens the bullish case. If RSI crosses the midline, upward continuation becomes even more likely.
Furthermore, price currently sits near the descending trendline. A confirmed breakout may target the $91,000 to $94,000 resistance zone. These levels acted as a strong pivot during previous rallies and consolidations. A clean move above this range could reestablish bullish dominance. BTC needs a weekly candle close above $85,000 to maintain bullish pressure. This would likely confirm a new CME Gap. Additionally, a successful retest of the black-black range top could attract more buyers early next week.
