Bitcoin Stabilizes at 200-Day SMA, Signaling Possible Trend Reversal
Buyers are defending a key support level, suggesting BTC could be poised for a rebound.
Technical patterns provide insight into market sentiment, and recent Bitcoin (BTC) candlestick formations suggest selling pressure may be fading. Since Friday, at least two daily candles have indicated strong buying interest at multi-month lows, hinting at a potential shift in momentum.
BTC’s decline has consistently found support at the 200-day simple moving average (SMA) since last Wednesday. Notably, the daily candles from Tuesday and Friday both feature small bodies with long lower wicks—suggesting that despite attempts to push the price lower, sellers were unable to maintain control as buyers stepped in to defend the level.
Such formations, appearing after a prolonged downtrend, often signal weakening bearish momentum and the possibility of a bullish reversal. Traders view these patterns as indications that selling pressure is subsiding, increasing the probability of an upward move.
If BTC holds above the 200-day SMA, it could rally back to Sunday’s high of around $95,000. A breakout beyond that level may set the stage for a push toward the $100,000 mark. However, a failure to maintain support at the 200-day SMA could open the door to deeper losses.
