Bitcoin has recently shown a significant resurgence, with buyers asserting control over the market trend and pushing the price past the crucial $90,000 mark. After establishing a strong base, the cryptocurrency is now in a consolidation phase, eyeing further upward movement if it maintains its momentum above key resistance levels.
Bitcoin Recovers with Steady Gains
The flagship cryptocurrency successfully held above the $86,500 threshold, initiating a robust recovery wave that breached the $88,000 resistance zone. This upward trajectory included a decisive break above a critical bearish trend line at $88,000 on the hourly chart. Currently, Bitcoin is trading comfortably above $90,500 and the 100-hour Simple Moving Average, also surpassing the 76.4% Fibonacci retracement level of its recent downturn from $92,872 to $80,595. Should the bullish sentiment persist, Bitcoin could target the $91,500 resistance, with subsequent targets at $92,000, $92,500, and potentially as high as $93,750 and $94,500. Further strong momentum could even see it challenge $95,000 and $95,500.
Potential for Another Decline
Despite the positive outlook, the possibility of a downturn remains. If Bitcoin fails to overcome the $92,000 resistance zone, it could trigger a new decline. Immediate support is identified near $89,750, with the first major support level at $88,500, followed closely by the $88,000 mark. Sustained losses below these levels could see the price drop towards $86,500 in the near term. The ultimate critical support is positioned at $85,000; a breach below this point could accelerate a sharper downward movement for BTC. From a technical perspective, both the Hourly MACD and the Relative Strength Index (RSI) indicate a strengthening bullish trend. The MACD is gaining pace in the bullish zone, while the RSI for BTC/USD is trading above the 50 level, reinforcing the current positive sentiment among buyers.
