After weeks of steady selling pressure, Bitcoin is showing its first signs of recovery. The recent bounce off the $80K demand zone sparked a strong move back above $90K, pulling sentiment slightly out of the fear zone. However, this is still a market trying to shake off a heavy downtrend. Therefore, buyers must prove this isn\u2019t just another dead-cat bounce.<\/p>\n
By Shayan<\/p>\n
The Daily Chart<\/h3>\n
On the daily chart, BTC is reclaiming the mid-range green demand zone between $89,000 and $93,000. The price is likely to challenge the upper trendline of the descending pattern in the coming days, which has been acting as dynamic resistance since the breakdown from $116K.<\/p>\n
Both the 100-day and 200-day moving averages remain overhead, both around the $108K mark. That cluster of resistance elements near the $107K\u2013$110K range is the real test for any sustained trend reversal. Until those moving averages flip into support, the broader structure remains bearish despite the recent bounce.<\/p>\n
<\/a><\/p>\n On the 4-hour chart, Bitcoin is on the verge of breaking above the bearish trendline with strong momentum. The fact that the price has created a higher low around $83K after weeks, fuels the sharp rally in this timeframe.<\/p>\n The asset is now testing the horizontal resistance around $93K and also tagging the descending trendline. This confluence makes the current zone critical. A clean break above and hold could open the door to the $103K supply zone. In comparison, a rejection here would likely lead to a pullback toward $88K, and potentially even a continuation of the bearish trend if it breaks below the $80K critical support zone.<\/p>\n On the on-chain side, Bitcoin exchange reserves have recently posted a major drop, falling to their lowest level in years. This sharp decline in exchange-held BTC is typically seen as bullish, as it suggests coins are being moved into cold storage, likely for long-term holding.<\/p>\n Historically, when reserves drop while price recovers, it reflects accumulation by smart money. While not a short-term signal, this trend supports the longer-term bull case, showing that supply on exchanges continues to tighten, even during volatile price action.<\/p>\n \u00a0<\/p>\n Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.<\/span><\/span><\/p>\n<\/div>\nThe 4-Hour Chart<\/h3>\n
![\"\"](\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2025\/12\/BTC-Daily-scaled.jpg\")
On-Chain Analysis<\/h2>\n
Exchange Reserve<\/h3>\n
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