Bitcoin has executed a violent V-shaped recovery from $85,000 to $91,000 and neutralized the immediate bearish trend
- Immediate resistance lies at the $91,500-$92,100 "Breaker Block" while $90,000 now serves as critical support.
 |
| Image From Tradeview |
The Bitcoin market just reminded everyone why it remains the most aggressive asset class on the planet. After a brutal liquidation event flushed price down to the $85,000 floor we are witnessing a textbook "V Shaped" reversal. The asset is currently trading near $91,068 and has effectively erased the last leg of bearish structure in a matter of hours. This is not just a drift higher. It is a violent repricing event driven by urgency and forced buying.
The drop to $85,000 was a necessary cleanse. It acted as a "liquidity vacuum" where price sliced through thin order books to find a heavy pocket of limit buy orders. This rapid vertical decline flushed out over leveraged longs who were late to the party. Once those weak hands were eliminated the market found its true floor. The reaction from this level has been immediate and parabolic. We are seeing large green candles with virtually no lower wicks. This indicates that buyers are stepping in at the open of every 15 minute candle and holding the bid until the close.
We have officially confirmed a Market Structure Shift (MSS) on the intraday timeframe. By smashing back through the psychological $90,000 barrier and holding above $91,000 the bears have lost control. The sequence of "lower highs" that characterized the previous downtrend is broken. Now the market is in a "mark up" phase. Traders who tried to short the bounce are now underwater and their stop loss orders are acting as rocket fuel for this ascent.
Volume confirmation validates this move as genuine. A rally on low volume is often a trap but here we see expanding volume alongside rising prices. This signals institutional participation. Big players are not just watching. They are accumulating. The aggression of the buying suggests they are rushing to secure entries before the price runs away further.
However we are entering a zone of turbulence. The price is slamming into a "Breaker Block" between $91,500 and $92,100. This area previously acted as support before the crash. Now it acts as overhead resistance. Traders who were trapped in long positions during the drop will be looking to exit at breakeven. This creates a natural wall of supply that the bulls must chew through.
If we do get a pullback the $90,000 level has flipped from a ceiling to a floor. It is the new line in the sand for the bullish case. Below that lies an inefficiency in the chart around $88,000 known as a "Fair Value Gap" (FVG).
Markets often return to these gaps to "refill" orders before continuing higher. A dip to $88,000 would be a healthy technical correction rather than a reversal.
The psychology here is brutal for the bears. This looks like a classic short squeeze where late sellers are being forced to buy back their positions to cover losses. This feedback loop can push prices higher than rational analysis would suggest. But caution is still necessary. The move is overextended and technical indicators are likely flashing "overbought." Chasing the green candles right here carries a poor risk to reward ratio. The smart money will be waiting for a retest of support rather than buying the breakout blindly.