Bitcoin's Wild Ride: From $90K High to $78K Low, Recovery Uncertain

Bitcoin's price has been volatile in recent weeks, with a sudden increase above $90,000 raising questions about the end of its bearish trend. After forming a double-top pattern, Bitcoin broke down to a four-month low but has since recovered significantly from the dip. As of now, it appears strong, but the next direction remains uncertain.

As expected, Bitcoin's price collapsed last week following a strong breakthrough at the crucial $90,000 level, which had been standing as support for more than three months. It tested $78,200 with a long wick and closed that week's price well above the lost crucial support. The collapse started after losing grip above the $95,000 level, but the price interestingly retested that level during yesterday's surge – completing a break and retest pattern. The level was rejected, and the price dropped to around $93,600 at the time of writing.

Retaking the rejected high with a surge could fuel more buying towards the $100,000 mark, signaling a trend shift on the daily chart. However, looking at the market, there's no conviction for a shift yet following the latest price rejection. Bitcoin's downtrend is still in play on the daily chart, but things are likely to change if the price stays well above the recent low. Otherwise, it may experience more dips in the coming days. Currently, it is gaining traction on the day.

Marking the $95,000 level as resistance since last weekend, a push above it should advance recovery to $99,550. The $103,278 level is the next resistance to watch, followed by the $109,588 resistance. Towards the downside, the $91,000 level is providing support along with $85,000 and $80,000. If the price collapses through these levels to reclaim last week's $78,258 low, the next drop may surface at $71,000.