Bitcoin pierced the $80,000 mark overnight, reaching as high as $81,300 before pulling back to roughly $79,000, according to chart analysis from Verified Investing chief market strategist Gareth Soloway. The pullback has raised a question for traders. Does this rally confirm a new bull market, or is Bitcoin simply testing resistance in an ongoing bear market?
Signs of Fading Momentum
Soloway pointed to a few technical warning signs building on the chart:
- Growing upper wicks on recent candles, a pattern he said signals increasing selling pressure as price pushes higher
- A trend line, previously support, that is now acting as resistance after being broken and retested
- A cluster of resistance levels stacking up in the $80,000 to $83,000 region
The One Question That Matters
According to Soloway, confirming a genuine trend reversal comes down to a single technical test. Has Bitcoin made a higher high compared to its prior swing high?
- The relevant prior high sits at $82,830
- As of this analysis, Bitcoin has not yet closed above that level
- A confirmed break above $82,830 would mark the first higher high in the current pattern, an early signal of a potential shift from a downtrend to an uptrend
Soloway was clear that even a break above this level would only be the “beginning stages” of confirming a new bull market, not definitive proof on its own.
Where a Pullback Could Land
If Bitcoin does confirm a higher high, Soloway laid out two possible support zones for a subsequent pullback:
- $73,000, a more aggressive buy-the-dip level based on prior price action
- $67,000, which he described as the stronger, more conservative buyable level given the prior consolidation and breakout pattern at that price
Soloway said the method for judging trend direction doesn’t need to be complicated. The question, he said, is simply whether Bitcoin has shifted from making lower highs and lower lows to making higher highs and higher lows.
What a Break Above $82,830 Would Mean
Soloway said a confirmed close above $82,830 would establish Bitcoin’s first higher high, though not yet a higher low, which he called the early stage of a potential trend change rather than confirmation of a new bull market. He said that outcome remains unconfirmed and needs to be watched.
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