Bitcoin Technical Analysis: Rebound or Bull Trap?

Current Market Situation

Bitcoin (BTC) is currently trading at US$89,014.50, showing a +0.96% daily gain. While this might appear positive at first glance, a deeper analysis reveals that the cryptocurrency is still trapped in a bearish trend. The price remains below the critical US$90,000 psychological level, which has been a significant resistance point.

Technical Indicators

1. Trend Analysis: The overall trend remains bearish, characterized by lower highs since the peak of US$125,000. This pattern indicates continuing selling pressure.
2. Current Resistance: The US$90,000 level remains a crucial resistance point. A convincing daily close above this level is needed to signal a potential trend reversal.
3. Recent Performance: The current price action might be a dead cat bounce rather than a genuine recovery, as it's still within the broader downtrend.

Market Implications

The current price movement leaves investors with a critical decision: whether this rebound is sustainable or merely a temporary relief. The technical indicators suggest that without breaking through the US$90,000 resistance, the bearish trend is likely to continue. Investors should remain cautious and monitor the price action closely, particularly how Bitcoin closes on the daily chart.