Bitcoin - Bulls Take Control: Short term rally to $86K?Bitcoin has once again reacted to the $81,000 support level, bouncing from this key demand zone and showing signs of bullish momentum. The price is currently moving upwards, and the next logical target appears to be the $85,500 – $86,000 zone, where a Fair Value Gap (FVG) and the Fibonacci golden pocket align. This area is expected to act as a significant resistance level, meaning we could see a rejection from there, leading to another move back toward support.
The plan is to monitor the price as it approaches $86,000, watching for signs of a reversal or continued strength. If a rejection occurs, Bitcoin could make its way back toward $81,000 or lower, providing another potential buying opportunity.
Bitcoin’s Reaction to $81,000 – A Strong Demand Zone
Bitcoin has consistently found support at $81,000, and this level once again played a crucial role in preventing further downside. This area has been tested multiple times, reinforcing its importance in the current price action. Each time the price has dropped to this level, buyers have stepped in aggressively, causing strong rejections to the upside.
The latest bounce from this support level suggests that there is still demand in the market, at least for now. The presence of long wicks at this level indicates that sellers attempted to push the price lower, but buyers quickly absorbed the selling pressure, resulting in a reversal. This move aligns with the broader market structure, which suggests that Bitcoin is still ranging between support at $81,000 and resistance near $86,000.
Short-Term Target: Fair Value Gap (FVG) & Golden Pocket at $86,000
Now that Bitcoin has rebounded from support, the next major area of interest is the Fair Value Gap (FVG) and the golden pocket retracement zone around $85,500 – $86,000. This level is important for several reasons.
First, the golden pocket (0.618 – 0.65 Fibonacci retracement) is a common area where price reversals occur, especially after a significant move. It acts as a magnet for price action, drawing the market toward it before a potential rejection.
Second, the Fair Value Gap (FVG) represents an imbalance in price, meaning Bitcoin could aim to "fill" this gap before making its next major move. Gaps like these often get revisited before the market decides on a new trend direction.
Finally, liquidity is likely concentrated above $85,000, meaning stop losses from short positions could be triggered in this zone, leading to increased volatility. If Bitcoin reaches this level, traders should closely monitor how price reacts. A strong rejection could signal a move back down, while a clean breakthrough could indicate further upside potential.
Potential Rejection and Move Back to Support
Despite the short-term bullish outlook, there is a high probability that Bitcoin will face resistance near $86,000, leading to a pullback. If this rejection occurs, the price could once again retest the $81,000 support level. This would keep Bitcoin within a broader trading range and present another opportunity for buyers to step in.
A failure to hold $81,000 on the next test could open the door for a deeper correction toward $78,000 – $76,000, where more buyers might be waiting. However, as long as Bitcoin remains above the $81,000 mark, the market structure remains relatively stable.
Final Thoughts
Bitcoin is currently in a short-term bullish phase, with price targeting the $86,000 resistance zone. However, traders should be cautious as this level aligns with key technical factors such as the golden pocket, Fair Value Gap, and potential liquidity grab. A rejection from this area could lead to another move back down to support.
For now, the key levels to watch are $86,000 for a potential rejection and $81,000 for a potential retest. If Bitcoin breaks through resistance convincingly, we could see a more extended rally, but until then, the market remains within a defined range.
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