Bitcoin Holds Key Fibonacci Support as Signs of Recovery Appear and an Analyst Eyes a Move to New All-Time Highs
Renewed optimism surrounding potential Federal Reserve rate cuts has reignited hope for Bitcoin’s price recovery. Currently, Bitcoin is trading at $87,729, showing signs of stabilization after reaching a peak of $89,209 earlier this week. The daily price range has experienced fluctuations from $86,215 to $88,097, reflecting a relatively tight trading environment over the past 24 hours.
Taking a broader perspective, Bitcoin’s price has seen a decline of 3.5% over the last week and 15.1% over the past 14 days. These performance indicators suggest a cautious outlook in the short term. Traders are now speculating whether Bitcoin can breach crucial resistance levels to embark on another upward trajectory.
Bitcoin Price Analysis
From a technical analysis standpoint, Bitcoin’s latest daily chart indicates a potential rebound from the $80,559 local low established on November 21. At present, the price hovers around $87,794, sitting comfortably within the mid-zone of its current range while testing early signals of recovery.
The Fibonacci retracement levels indicate clear resistance zones that Bitcoin must navigate. Currently, the asset is trading below the 0.236 level at $89,013, while the major barriers at 0.382 ($94,243), 0.5 ($98,470), and 0.618 ($102,697) remain ahead. Until Bitcoin reclaims these levels, the market seems to be in a corrective structure, though the tightening range hints at a shift from aggressive selling to measured accumulation.
Importantly, breaking above the 0.236 Fibonacci level could pave the way for a recovery toward the $94,000–$98,000 range. Conversely, if Bitcoin fails to maintain its position above this mid-range, it may be poised to revisit the support area around $82,000 to $80,500.
The Awesome Oscillator (AO) provides additional context by illustrating a gradual decline in bearish momentum. After experiencing deep red bars through much of November, the AO is beginning to print lighter indicators and green bars, signaling an early bullish move.
Bitcoin Repeats 2021 Bear Setup
Analyzing broader market patterns, a recent assessment by Merlijn The Trader identifies a striking similarity between Bitcoin’s current market structure and the bearish setup experienced in 2021. During that year, Bitcoin struggled to uphold a key horizontal support level and subsequently broke below a vital descending trendline, which led to a significant downturn.
The current chart displays Bitcoin once again testing a major macro support zone around $82,000. However, unlike in 2021, where the breakdown confirmed a deep bear cycle, Bitcoin has shown resilience by rebounding off this level.
According to Merlijn, the successful defense of the $82K support is a critical factor that could potentially shift the market to a bullish phase, providing Bitcoin can break above the existing downtrend line. His analysis sets a target at $180,000 if this formation unfolds—an impressive 105% increase from the current trading price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
