#BitcoinPriceWatch BTC Technical Outlook | Bitcoin Defends Key Demand Zone as Bearish Momentum Fades

Bitcoin remains under bearish pressure following a sharp rejection from higher price levels, yet recent price action suggests early signs of stabilization. BTC is currently holding within a critical demand zone between $86,000–$89,000, an area where buyers are actively defending. This zone aligns with previously established lower support blocks on the chart and now represents the primary short-term battleground that will likely determine the next directional move.
The recent sell-off began after Bitcoin failed to sustain momentum above major Fibonacci resistance levels at $109,400 (0.618 Fib) and $116,450 (0.786 Fib). These rejections confirmed strong distribution at higher levels and led to a decisive breakdown below all major moving averages. The 20 EMA ($91,119), 50 EMA ($95,840), 100 EMA ($101,250), and 200 EMA ($103,182) are now all positioned above price, forming a dense resistance cluster that reinforces the broader bearish structure.
At present, BTC is consolidating tightly within the demand zone, forming a minor ascending structure from the local low. This price behavior hints at a potential short-term relief bounce; however, any upside move remains corrective unless Bitcoin can reclaim key Fibonacci levels and regain lost moving averages. Without such confirmation, rallies are vulnerable to rejection.
The first level bulls must reclaim is $91,426 (0.236 Fib). A daily close above this level would indicate short-term stabilization and open the door for a stronger recovery attempt. For upside continuation, BTC would need to break and hold above $98,070 (0.382 Fib) and $103,439 (0.5 Fib). A full trend reversal would only be confirmed with a decisive breakout above $109,425 (0.618 Fib), which would signal a shift back into bullish market structure.
On the downside, failure to maintain the $86,000–$89,000 demand zone would significantly weaken the current setup. A breakdown below this area could accelerate bearish momentum and expose Bitcoin to the next major support near $80,686, corresponding to the Fib 0 level.
Momentum indicators reflect the current uncertainty. The RSI at 40.39 suggests weak momentum, but stabilization is beginning to form. Selling pressure appears to be slowing, though buyers remain cautious and have yet to demonstrate strong conviction.

Key Levels to Watch
Resistance
$91,426 (0.236 Fib)
$98,070 (0.382 Fib)
$103,439 (0.5 Fib)
$109,425 (0.618 Fib)
$116,454 (0.786 Fib)
Support
$88,000–$86,000 (major demand zone)
$80,686 (Fib 0 support)
RSI
40.39 — weak momentum, showing early stabilization

Summary
Bitcoin is currently defending a major demand zone following a strong bearish impulse. While conditions allow for a short-term relief bounce, the broader trend remains bearish as long as price trades below the $98K–$103K EMA and Fibonacci resistance cluster. Bulls must reclaim $91,426 to regain short-term control, while a loss of current support would likely trigger another leg lower.

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