Bitcoin Analysts Warn Key Levels Must Be Reclaimed for Price Confirmation

Bitcoin's relief rally appears to be cooling off, with a significant pullback below $81,000. Analysts warn that key levels must be reclaimed for the price to confirm a durable continuation higher.

The cryptocurrency has reclaimed important support levels, including the True Market Mean at $78,200 and the Short-Term Holder (STH) cost basis at $79,100. However, it still needs to break resistance at $85,000-$88,000 to confirm that the bottom is in.

A sustained move above this level could put recent buyers back in profit and reduce sell pressure, according to Glassnode's Week Onchain newsletter. This would be a crucial milestone for Bitcoin, as it would rank among the shortest episodes of its kind in Bitcoin market history.