Bitcoin Rebounds Near $104K but Bearish Risks Still Loom

Bitcoin has shown signs of recovery, rebounding close to $104,000, but analysts warn that the recent upward movement might just be a temporary bounce within a continuing bearish trend.

Short-Term Bearish Pattern Remains Active

Despite the encouraging uptick, BTC remains under pressure after breaching the neckline of a head-and-shoulders (H&S) pattern on Thursday. The price action aligns with a common retest move, where the asset returns to the breakdown zone, typically followed by another drop.

Support and Resistance Levels

Currently, Bitcoin is facing resistance near $104,000. A stronger bearish continuation could see the price fall to immediate support at $100,000, and then to $95,500. For a bullish reversal, BTC must break decisively above $107,000.

Behavioral Analysis Behind the Move

This kind of rebound is often attributed to profit-taking from early short sellers. As new sellers who missed the initial drop enter at the neckline, selling pressure increases again, pushing the price lower.

BTC is not out of the woods yet.

Omkar Godbole

The pattern reflects the behavioral finance principle of prospect theory, where traders react to losses and gains differently, contributing to cyclical market behavior.

Conclusion

While the broader outlook for Bitcoin remains constructive in the long term, caution is advised in the short term. A confirmed move above $107K could signal a bullish shift, but until then, the bearish risk persists.