Bitcoin Rebounds After Failed Break Below $80,000 Support

Bitcoin dipped to a session low of $79,694 on Monday, briefly violating a closely watched support zone spanning $80,106 to $81,183 — a range that has served as a key technical reference since August 20. The break initially suggested additional selling pressure was forthcoming, with the upper boundary of that zone expected to act as resistance on any bounce.

Instead, sellers failed to press their advantage. The price reversed sharply, reclaimed the broken support area, and extended its rebound to $82,537 within the hour. The failed downside break removed some near-term bearish pressure and repositioned Bitcoin within a broader trading range that extends as high as $87,374.

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The immediate obstacle for buyers now sits at the converging 100- and 200-hour moving averages near $82,710. A sustained move above both averages would shift the short-term bias higher, opening successive targets at $84,178 — this week's high — followed by $85,578 and ultimately $87,374. Analysts note that a brief punch above the averages followed by a quick reversal would leave buyers exposed to their own failed breakout.

Should the price stall beneath the moving average cluster, Bitcoin would remain locked in a battle between the $80,106–$81,183 support floor and the $82,710 ceiling. A retreat back below $80,106 would hand sellers the upper hand and put today's low of $79,694 back in play. Below that level, the 38.2% Fibonacci retracement of the rally from the July low points toward $76,052 as a potential downside target.

The episode illustrates a core principle in technical trading: a failed breakdown can trigger short-covering that adds fuel to a rebound, but it does not by itself establish an uptrend. Buyers must still clear — and hold above — the next resistance level before a more meaningful recovery can be confirmed. Continue reading at Forexlive.