Bitcoin defends $80K — Relief bounce or deeper $77K test next?

Bitcoin Bounces Back to $82.8K, But Remains Cautious Amid Elevated Market Stress

Market Analysis

Bitcoin has bounced back from a 7.59% decline to trade at $82.8K, but a short-term cautious outlook is warranted due to elevated market stress and net outflows from exchanges. Despite a bullish swing structure, the buyers do not have a clear advantage, and a deeper test at $77K is possible.

Key Takeaways

• Bitcoin's 1-day chart revealed a bullish swing structure, with the recent correction dipping below the 50% retracement level at $81,230.
• Elevated market stress signals, including net outflows from exchanges and a decline in funding rates, should be watched closely.
• A stress index reading above 55, combined with a price drop below $80.7K, would be a strong warning sign.

Technical Analysis

The recent correction has only just dipped below the 50% retracement level at $81,230. While there is room for further drawdown to $77.7K, the structure has remained bullish. Hence, short-term caution is warranted, but a move back above $83.6K could mean that the correction has likely ended.