Bitcoin's Potential Retest Before Rally

Bitcoin closed above 1.414 Fibonacci and regained 20 week MA signaling strong momentum for a possible breakout

Price action between 93280 and 93830 shows Bitcoin holding key levels after the bullish weekly close in April 2025

Traders watch if Bitcoin will retest 90000 or 88000 before another strong upward move begins this market cycle

Bitcoin ($BTC) has made its most bullish weekly close in months, finishing above various major technical levels marked on the chart. The weekly candle finished above the Bull Market Support Band as well as the pivotal 20-week Moving Average (MA). Then the price closed above the weekly Conversion Line and the Baseline of the Ichimoku indicator.

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The market saw $BTC additionally reclaim its place above a 45-degree angle resistance, which, along with the 1.414 Fibonacci extension level being closed above, is known as a major directional indicator. The question for investors now is whether or not Bitcoin will need to test the downside towards the low $90,000s or the upside towards the high $80,000s.

Key Technical Levels Reclaimed

Bitcoin's latest weekly close demonstrated strength, breaking back above the Bull Market Support Band for the first time in months. This break is historically regarded as a signal of renewed investor confidence, which usually occurs prior to major rallies in past cycles.

This closing also marked the regained long-term support metric, the 20-week MA. The closing back above the 20-week MA has very much coincided with a rapid price increase and significant bullish trends.

Let us take note that Bitcoin closed above the weekly Ichimoku Cloud Conversion Line and Baseline. The importance of these two lines is paramount in Ichimoku analysis, as they are key indicators of trend and strength of momentum. The close above these indicators would perhaps suggest the start of a positive uptrend reversal. 

Fibonacci Extension Level Adds to Positive Outlook

Another significant milestone was Bitcoin closing above the 1.414 Fibonacci extension level, approximately $91,622. Fibonacci levels are widely applied by traders in their pursuit of possible resistance or support regions during bullish or bearish waves.

The reclaiming of this level suggests that Bitcoin's bullish momentum is strong, and should the trend remain intact, it may point toward even higher extensions. In past cycles, closing above such significant Fibonacci levels has often preceded major breakout moves in Bitcoin's price.

Furthermore, Bitcoin has just climbed back above an important 45-degree angle trendline resistance. The angle has often acted as a natural support or resistance line based on the market direction at a given time. An active move above thus enhances the probability of a positive medium-term trend for Bitcoin. The combination of all these factors, especially reclaiming the 1.414 Fibonacci extension and major trendlines, indicates renewed strength coming from the buyers.

Potential for Backtest Before Uptrend Resumes

Although there has been nothing short of a remarkable improvement in the technical situation of Bitcoin, the market is still considering the scenario of a possible backtest. Analysts suggest that Bitcoin might want to take a trip down to just about low $90,000s or possibly high $80,000s before the uptrend fully resumes.

Such backtests would not necessarily be considered mad, as they might help to underline the validation of new support zones. Price action in the past has found Bitcoin retesting critical levels prior to embarking on a more sustained upward journey.