- Bitcoin rebounds after hitting support near 90,600
- This could mean that the bearish correction is over
- A break above 100,000 could signal uptrend continuation
- For the picture to turn bearish, a dip below 66,700 may be needed
BTCUSD rebounded on Wednesday, after hitting support near the 90,600 zone on Tuesday. Although the crypto king corrected lower after nearly touching the psychological round figure of 100,000, the broader picture continues to point to a healthy longer-term uptrend, and today’s rebound may be the beginning of the next impulsive wave.
The RSI exited its above-70 zone, but it turned north again today, suggesting that it could re-enter that extreme zone and perhaps stay there for a while longer. This would indicate extremely bullish momentum rather than overbought conditions. The MACD, although below its trigger line, remains at extremely positive levels and has started showing signs of bottoming.
If the bulls are strong enough to stay in charge, they may decide to retest the 100,000 zone, the break of which would confirm a higher high and perhaps set the stage for a new record around the next psychological zone of 105,000.
On the downside, a dip below 90,600 could signal a deeper bearish correction, perhaps towards the 84,500 area, but the uptrend would still be intact, supported by the trendline drawn from the low of September 7, as well as the 100- and 200-day EMAs. For a bearish reversal to start being discussed, a dip below the key pivot zone of 66,700 may be needed.
To sum up, Bitcoin rebounded today, suggesting that the bulls may be in the mood to extend the prevailing uptrend. A breach of the 100,000 figure will take the price into uncharted territory and corroborate the bullish case.
