A key contrary indicator is flashing green, sparking renewed hope for Bitcoin bulls who are eyeing a return to six-figure prices.

Bitcoin (BTC) recently experienced a post-Fed drop to $96,000, triggering a significant contrary signal that has historically marked the conclusion of price pullbacks. On Wednesday, the Federal Reserve cut its benchmark borrowing rate as expected, but revised its rate cut forecast for 2025, lowering it from four cuts to just two. The central bank also stated that it has no intention of supporting any potential government efforts to create a strategic Bitcoin reserve.

Since the Fed’s announcement, Bitcoin has seen a decline of over 8%, dipping to a low of $96,000 at one point. As of now, the cryptocurrency is trading around $97,500, nearly 10% lower than its record high of $108,266 achieved earlier this week, according to CoinDesk data.

This price drop has caused the 50-hour simple moving average (SMA) to fall below the 200-hour SMA, signaling a bearish crossover. While such a pattern typically suggests a deeper pullback, it hasn’t always been a reliable indicator during the recent bull run.

Bitcoin has faced multiple pullbacks since its post-U.S. election rally from $70,000 to over $100,000, each marked by a bearish crossover between the 50- and 200-hour SMAs.

However, this most recent crossover is providing optimism for bulls who are anticipating a bounce back into six-figure territory. A potential rally could encounter resistance near $106,000, where a descending trendline aligns with the price action. If Bitcoin manages to break through this level, it could pave the way for new all-time highs.

That said, it’s important to note that patterns don’t always play out as expected, and this contrary indicator could fail to materialize, potentially leading to further declines. The key level to watch will be the recent low of $96,000—if prices dip below this point, it could expose the swing low around $91,000 from December 5.