Bitcoin has once again received a boost of confidence for a recovery as crypto market analysts are starting to see the potential for a six-figure move.
The cryptocurrency’s price surged above $92,000 after recently falling to a low of around $84,500.
Analysts explained that the rebound is a positive sign after a period of significant volatility at the beginning of the month. The main target now is for Bitcoin to break and sustain above $92,000 to confirm the recovery momentum.
Comparisons with previous price cycles suggest that the latest drop may be the last shock before a stronger recovery trend is established.
Several indicators are also recording lower readings compared to major drops such as Luna, FTX and the pandemic period, indicating that previous selling pressure is deeper.
According to TradingView data, Bitcoin hit a 24-hour high of $93,040 on Coinbase in early trading on Wednesday. The recovery has covered all losses from the sharp drop late Sunday that plunged nearly $8,000.
Before the rally, analysts highlighted the crucial support zone between $86,000 and $88,000 that needs to be held to stabilize the price structure. The level has been tested dozens of times over the past month without being broken, indicating that selling pressure is easing and buying interest remains strong.
However, analysts also warn that a break below the zone could open the way for lower prices, as it signals a transition from an accumulation phase to a distribution by experienced market participants.
