From CryptoPotato · By Shayan Markets
Bitcoin is trading around $83K after the rejection from the $86K to $90K resistance zone weakened short-term structure, while the Coinbase Premium Index has turned sharply negative, suggesting US-based buying demand may be fading. BTC is attempting to stabilize, but buyers need to reclaim nearby resistance to improve the outlook.
Bitcoin Price Analysis: The Daily Chart
Bitcoin’s daily chart shows a substantial recovery from the June lows near $58K to the recent highs around $86K. However, the rally has encountered strong resistance, and the latest price action suggests that sellers are regaining control in the short term.
BTC has been rejected at the $86K to $90K resistance zone, with the lower end of that zone, around $86K, acting as the immediate barrier to a renewed advance. A broader resistance area appears around $95K, which would matter if Bitcoin reclaims the nearer supply zone and resumes its recovery.
Still, the price is above the 100-day and 200-day moving averages, both currently near $72K, after a bullish crossover. Although BTC remains comfortably above these averages, their recent crossover and upturn reflect improved medium-term structure following the summer recovery. The moving averages could become important dynamic support if the correction deepens, but they are not immediate downside targets while the market remains above the nearer support zones.
The first key downside area to watch is the $77K demand zone created by the bullish order block that initiated the final leg of the recent rally. If this area is lost and the price closes below $75K, it would weaken the recovery structure and expose the mentioned moving averages around $72K.
Yet, for now, the daily structure remains in a recovery phase, but the rejection from resistance and a potential loss of short-term support could suggest that Bitcoin may need to undergo a deeper correction before attempting another advance.
BTC/USDT 4-Hour Chart
On the 4-hour chart, the asset has broken below a rising wedge after getting rejected from the $86K region. The breakdown below the pattern’s lower trendline indicates the pattern has resolved bearishly, at least in the short term.
Following the breakdown, BTC declined toward the $80K area before staging a modest rebound toward $83K. This recovery suggests that buyers are attempting to stabilize the price, but the bounce remains limited as a bearish order block has formed near $85K that could push the asset lower once more.
On the downside, the $80K low represents the nearest area where buyers have recently attempted to step in. If BTC loses this zone, the next major support is the same $75K to $78K demand area visible on the daily chart.
The 4-hour RSI has also recovered from the oversold territory and is now in the mid-40s, suggesting that selling momentum has eased somewhat. However, it remains below the neutral 50 level, meaning the rebound has not yet established convincing bullish momentum.