Bitcoin Rebounds at $104K as Bulls Defend Key EMA Support

Bitcoin has stabilized around $104,000 after a sharp drop from recent highs near $112,000, bouncing directly off the critical 50-day Exponential Moving Average (EMA). This level, often seen as dynamic support, appears to be holding strong as buyers step in. The rebound suggests bulls are not yet ready to surrender momentum, with the Relative Strength Index (RSI) climbing from neutral territory—an early sign of renewed buying interest.

Technical traders are closely watching the 26-day EMA, a short-term trend line that could act as the springboard for a swift relief rally if Bitcoin moves decisively above it. A breakout above this level may see the price quickly retest the $107,000–$108,000 zone. However, this recovery still faces challenges.

The current bounce lacks strong trading volume, raising doubts about its sustainability. Without significant volume, the move could be short-lived, and failure to reclaim the 26 EMA might lead Bitcoin back to the crucial $100,000 support level. This psychological barrier also aligns with a former resistance zone from April's breakout, reinforcing its importance.

While sentiment remains cautiously optimistic, the next few sessions will be pivotal. Bitcoin must maintain its position above the 50 EMA and break through short-term resistance to confirm a true trend reversal. Until then, the market remains at a crossroads—poised between a bullish breakout and a potential drop back to key support.

Traders should monitor EMA levels closely, as they continue to shape near-term market sentiment. The coming days will reveal whether Bitcoin's bounce is the start of a sustained rally or merely a brief reprieve in a larger correction. For now, the bulls are still in the game.