The crypto markets healed to some extent after gaining strength at the beginning of the American trade. Bitcoin’s price rose above $80,000 following a massive increase in buying pressure, increasing the possibility of a strong recovery. Meanwhile, the volume dropped by more than 20% to 30%, suggesting the bears could have taken a back foot for a while. As a result, the traders can expect a smooth upswing if the market sentiment remains stable.
Soon after Liberation Day, the fear among the market participants surfaced, causing a huge market crash not seen in recent history. Most of the nations other than China approached the US, which keeps the bearish possibility alive. In such a scenario, even if the BTC price recovers above $80,000 or the crucial resistance at $81,100, will the bulls manage to hold the rally above the gains?
Bitcoin’s recent price action has been highly volatile as it witnessed massive forced liquidations and cautious institutional sentiments. Therefore, the token is riding a wave of mixed signals, which may keep the investors vigilant.
Despite a recovery, the BTC price continues to trade under a bearish influence within a descending parallel channel. The token has rebounded from the average zone of the channel with a massive rise in the buying volume. However, the bears are restricting the rally from rising above $80,000, as only a rise above $81,000 could elevate the levels above the bearish influence. However, the technicals have been flashing mixed signals, which keeps the bearish possibilities alive.
The recovery doesn’t seem to have attracted enough liquidity, as the CMF, which is at 0, is about to drop below the levels, which could be a matter of concern. This suggests the bears do possess some strength, which may flip the rally anytime. On the other hand, the RSI is trying to recover but until it rises above MA-based RSI at 45, the possibility of a breakdown could persist. Hence, the Bitcoin (BTC) price continues to hold the likelihood of a potential pullback until the resistance at $81,200 is cleared and secured.
