3 Reasons Bitcoin Could Bounce From Here
After hitting $82,000 per coin in early May, bitcoin has since fallen about 8%. Is this the start of a bigger drop, or are there reasons to believe the pullback could be over? This chart shows three reasons why bitcoin could be setting up for a bounce.
Bounce reason 1: Bitcoin is resting on the 50-day moving average
The 50-day moving average (MA, teal line) is a big spot for traders. It measures the average closing price of bitcoin over the past 50 days.
Bitcoin has hovered around the 50-day MA for almost three days now – without yet breaking below it. That suggests technical traders are buying bitcoin here.
Reason 2: Bitcoin is also on the lower Bollinger Band
It’s not every day that the 50-day moving average and the lower Bollinger Band (gold) line up. But they’re pretty much at the same place now, and both are holding as bitcoin price support.
The lower Bollinger Band in this chart measures “two standard deviations of volatility” below the middle band (the 20-day MA). According to Mr John Bollinger himself, prices only trade outside the bands about 11% of the time. So probability favors bitcoin staying above the bottom band from here (i.e. bouncing).
Reason 3: Hidden RSI bullish divergence potential
Bitcoin’s relative strength index (RSI, blue) is now lower than it was on April 29, 2026, when bitcoin created its last daily low. But the bitcoin price is slightly higher than that now.
If bitcoin makes a low here (see reasons one and two above), that would result in “hidden bullish divergence”. A higher low on the bitcoin price, with a lower low on the RSI.
That doesn’t mean bitcoin is going straight to the moon. But it does mean sellers are throwing more pressure at bitcoin, and not getting much torque.
In other words, now might not be the best time to be greedy for a better entry.
As usual, none of this is investment advice. If you liked this analysis, check out my free newsletter for how-to guides and investment insights across crypto, stocks, metals, and more.
