Bitcoin's Bullish Rebound Paves the Way Towards the $98,000 Imbalance Zone

Bitcoin is demonstrating renewed strength following a significant drop, as buyers are returning and momentum is shifting upwards. Since reclaiming crucial support levels, the possibility of reaching the major $98,000 imbalance zone is back on the agenda. However, bulls still need to confirm that this rebound shows genuine strength.

Key Takeaways

Bitcoin is showing signs of recovery after a decline, aiming for the $98,000 imbalance zone.
The Fair Value Gap has been filled, and the Bearish Order Block has been tagged, providing traders with opportunities for long setups.
A high-timeframe close above $107,550 could signify a new bullish phase for Bitcoin.
Bitcoin has rebounded above the $90,000 support level due to improved macro sentiment but needs to hold above this range for further upward movement.
Caution is advised as the potential for a dead-cat bounce remains, pending confirmation from market indicators.

Bitcoin

Key Technical Movements in Bitcoin

Fair Value Gap Completed and Bearish Order Block Hit

In a recent market update, crypto analyst Crypto Patel pointed out that Bitcoin has completed an essential technical move by filling the Fair Value Gap (FVG) and hitting the Bearish Order Block precisely as anticipated. He stressed that traders who chose to position themselves for the upside instead of shorting in the $81,000–$85,000 range likely benefited from a clear and predictable long setup.

Now that this phase is wrapped up, all eyes turn to Bitcoin’s next significant target. Patel emphasizes the $96,800–$98,000 FVG as the next high-timeframe imbalance zone. Broader analysis indicates that Bitcoin might aim for the $98,000 zone before experiencing any notable corrective movement. This perspective aligns with his macro outlook, which continues to favor a final upward move into that price range before momentum potentially wanes.

Bitcoin BTC charting an upward path | Source: Chart from Crypto Patel on X

Potential Invalidation of Bearish Sentiment

Patel also outlines a clear point that could invalidate the current bearish sentiment. If Bitcoin closes above $107,550 on a sustained high-timeframe basis, it would completely negate the ongoing bearish market structure. Such a breakout might signal the beginning of a new bullish phase for Bitcoin, setting the groundwork for a fresh all-time high trend.

Early Signs of Strength in Bitcoin Price Movement

Defending the $90,000 Support Zone

The Boss, another market analyst, observes that Bitcoin's latest price movements indicate early signs of strength. After a notable decline, BTC reacted positively at local support and managed to rise above the $90,000 level, suggesting that buyers are entering the market with increased confidence. The charts now reflect a stable support zone that is resisting downward pressure.

Part of this rebound seems influenced by a more favorable macro sentiment. Expectations around the Federal Reserve tightening are easing, the overall risk appetite is rising, and there is a noticeable shift back toward risk-on assets, contributing to Bitcoin’s recovery effort.

Technically, The Boss highlights that Bitcoin needs to maintain its position above the $90,000–$91,000 range to establish a substantial upward trend from this support base. However, caution should be exercised. Without clear confirmation from momentum indicators and consistent trading volume, the current upward movement may face limitations. The risk of a "dead-cat bounce" remains a possibility, especially following such a significant sell-off.

Bitcoin BTC trading at $91,283 on the 1D chart | Source: BTCUSDT on Tradingview.com