Bitcoin eyes $107K as market rebounds; altcoins join broad crypto recovery
The cryptocurrency market is experiencing a rebound, with major coins like Bitcoin, Ethereum, XRP, and others showing positive performance after a bearish period. Bitcoin is trading above $104,700, recovering from recent dips, and is positioned to challenge the $106,453 resistance level. If the upward momentum continues, Bitcoin could hit the psychological $110k mark. Momentum indicators show declining bearish trends, suggesting potential further recovery. However, the market remains uncertain due to Federal Reserve rate concerns and indecisiveness among traders. Key support levels at $100k and $92k remain critical if bearish trends persist.
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Cryptocurrency Market Overview
The cryptocurrency market had a bearish Tuesday but is now turning the tide, with major coins and tokens currently in the green. Bitcoin (BTC), the leading cryptocurrency by market cap, is down by less than 1% in the last 24 hours and is set to reclaim the $105k level if the recovery continues. With Bitcoin recovering, major altcoins including Ether (ETH), XRP, SOL, and BNB are also performing positively.
Bitcoin Recovery in Progress
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) have steadied over the past few hours as the market momentum cools following recent resistance rejections. Bitcoin is now trading above $104,700 per coin, down by less than 1% in the last 24 hours.
The momentum indicators for the leading cryptocurrencies suggest weakening downward momentum, with bulls expected to push the price higher in the near term. Bitcoin's short-term relief has also prompted altcoins to recover from their recent slump, highlighting the broader market stabilization.
Impact of Federal Reserve Policies
The recent market stabilization comes despite uncertainty about another rate cut in December. The Federal Reserve reduced interest rates during its last FOMC meeting, but Fed Chair Jerome Powell dismissed expectations of another rate cut before the end of the year. Powell's hawkish comments contributed to Bitcoin's failure to rally past its all-time high of $126k, leading to a brief dip below $100k.
The $100k support level, however, has remained strong in recent weeks, providing a foundation for Bitcoin to potentially rally to a new all-time high in the coming weeks or months.
Bitcoin Eyes $107k as Key Resistance
The BTC/USD daily chart remains bearish but has shown signs of efficiency as Bitcoin’s price action has been mixed over recent days. Earlier this week, Bitcoin rallied and retested the key resistance at $106,453, the 38.2% Fibonacci retracement, but failed to surpass this level. As a result, Bitcoin dipped to the $102k region, but it has since bounced back and is now trading above $104,900.
If the recovery continues, Bitcoin could retest the resistance level at $106,453. Surpassing that level would allow Bitcoin to hit the $110k psychological mark for the first time since November 3, aligning with the 50-day Exponential Moving Average (EMA) level.
Technical Indicators and Possible Scenarios
The Relative Strength Index (RSI) on the daily chart reads 42, below the neutral level of 50, indicating that bearish momentum is fading. Additionally, the Moving Average Convergence Divergence (MACD) lines are converging, suggesting indecisiveness among traders.
However, if the bearish trend persists, Bitcoin could extend its correction down to the key support at $100,353. Losing this level may lead Bitcoin to retest the $92k level for the first time since June. Despite this, current market conditions remain largely indecisive, with bullish actions expected to push prices higher in the near term.