Bitcoin Price Bounces Off Key Support but Momentum Remains Uncertain

Bitcoin has rebounded sharply after hitting the 50-day EMA, rising from $102,816 to nearly $105,000 post liquidation events. While buying interest is evident, low volume raises concerns about the strength of this movement. The key resistance remains at $112,000, and careful monitoring of support levels around $103,000 and $102,000 is essential in the coming days.

Bitcoin (BTC) recently demonstrated a notable rebound after touching the crucial 50-day Exponential Moving Average (EMA). Specifically, the price jumped from $102,816 to almost $105,000. This surge occurred following a sharp sell-off that had been sparked by significant liquidation events, which effectively eliminated numerous overleveraged positions throughout the market. The rebound from the 50 EMA indicates that there is strong dip-buying interest, likely driven by retail traders and algorithmic trading responding to important technical markers.

Despite this rapid recovery, concern lingers due to the low trading volume accompanying it. Usually, when there’s a solid bounce, it is expected to be paired with a significant increase in volume. However, in this instance, the falling volume points to weak conviction from bullish traders. While the Relative Strength Index (RSI) currently stands at 53.75—still relatively safe from overbought territory—it is markedly lower than during this month’s earlier attempt when Bitcoin touched its all-time high near $112,000.

The trading atmosphere remains cautious, particularly with the $112,000 mark continuing to function as a key psychological resistance point. Without a substantial catalyst to bolster the price, it may take a while before traders can test that level again. For the moment, it is vital for Bitcoin to hold support above the 50-day EMA, which hovers around $103,000. Should the price drop below $102,000, sentiment could shift negatively, and the 100-day EMA, positioned at roughly $98,000, would then become the next major support area.

In terms of short-term prospects, Bitcoin bulls seem to maintain an advantage, assuming that current price levels remain stable. Nevertheless, sustaining this momentum towards retesting its all-time high may necessitate a new bullish trigger. In the interim, traders should keep a sharp eye on trading volume, which appears to be the crucial element currently lacking in affirming a definitive trend reversal.