Bitcoin (BTC) Price Prediction: Will BTC Continue Its Downtrend or Bounce Back?

Bitcoin is currently trading between $82,856 to $83,032 at 7:30 a.m. (ET) on Sunday, with a market cap of $1.65 trillion and a 24-hour global trade volume of $15.6 billion.

Bitcoin (BTC) price showed signs of short-term consolidation on the 1-hour chart, following a recent bounce from its lows, shifting slightly lower in early Sunday morning trades.

At the time of writing, Sunday morning saw Bitcoin trade between $82,856 and $83,032 in a quiet session. It had a market cap of $1.65 Trillion and a 24-hour trade volume of $15.6 Billion. For the past 24 hours, the cryptocurrency’s price varied between $81,629 and $83,496.03, remaining 23.6% below its all-time high reached on January 20, 2025.

On the 1-hour chart, after bouncing from the lows at $81,629, bitcoin price showed signs of short-term consolidation. Despite showing temporary upward momentum, lower highs and lower lows signaled the persistence of a broader downtrend.

Crucially, resistance at $84,500 remained in sight, while support at $81,600 was a key level to watch. Volume patterns suggested weak buyer participation, with green bars lacking conviction. A breakout above $83,500 on increased volume could indicate a short-term bullish move, whereas a rejection at this level would strengthen bearish sentiment.

On the 4-hour chart, a clearer view emerged of the recent relief rally from the lows at $81,629. While minor volume spikes during sell-offs highlighted market uncertainty, the absence of strong buying volume undermined the rebound’s credibility. A significant resistance range between $83,500 and $84,000 was pivotal.

Failure to break above this zone would suggest continued downside pressure, but a breakout accompanied by a volume surge could offer a buying opportunity. Traders should keep an eye out for patterns of rejection or bullish confirmation at these levels.

On the daily chart, bitcoin remained in a defined downtrend, having fallen from its recent high at $96,967. A cluster of red candles with extended wicks suggested persistent selling pressure, though periods of green candles signaled some support for buyers.

The nearest support at $82,000 was currently being tested, with further downside potential if this level failed. In terms of resistance, levels between $88,000 and $90,000 posed further challenges for bullish momentum. A sustained move above these zones, supported by increased volume, could signal a trend reversal.

Oscillator analysis reflected market indecision. The relative strength index (RSI) at 44, Stochastic at 30, commodity channel index (CCI) at -54, and average directional index (ADX) at 23 all indicated neutral conditions.

However, the awesome oscillator’s negative value of -10 suggested underlying bearish pressure. In contrast, the momentum indicator’s positive value of -843 and a bullish reading from the moving average convergence divergence (MACD) at -939 offered some encouragement for buyers. This divergence in signals highlighted the need for further confirmation before establishing directional bias.

Fibonacci retracement levels provided valuable reference points across all timeframes. On the daily chart, key levels varied from the $96,967 high to the $76,600 low, including $91,607 (23.6%), $88,758 (38.2%), $86,784 (50%), $84,811 (61.8%), and $82,022 (78.6%).

On the 4-hour chart, the $88,772 high and $81,629 low resulted in retracement levels at $87,148 (23.6%), $85,999 (38.2%), $85,201 (50%), $84,404 (61.8%), and $83,069 (78.6%). Similarly, the 1-hour chart’s retracement levels, from a high of $84,561 to a low of $81,629, presented resistance and support zones at $83,869 (23.6%), $83,440 (38.2%), $83,095 (50%), $82,749 (61.8%), and $82,263 (78.6%). These levels were key for traders to identify potential reversal or continuation points.

Moving averages (MAs) painted a predominantly bearish picture. All short and long-term exponential moving averages (EMA) and simple moving