Bitcoin (BTC) surged almost 5% over the last week, successfully reclaiming important support levels in the past three days. This recent bullish trend has pushed BTC closer to the $88,000 threshold, with some analysts indicating that a return to its prior price range could be imminent.
Potential for a 14% Surge in Bitcoin
After facing multiple rejections in the $84,000-$85,000 region over the previous fortnight, Bitcoin managed to reclaim this range over the weekend. The leading cryptocurrency has gained 4.7% from last week’s valuation, finishing the week above $86,000.
During the initial surge of the week, BTC aimed for the $89,000 resistance, achieving a biweekly peak of $88,765, but was unable to retest the next significant zone as bullish momentum waned. However, Bitcoin has maintained its current range, stabilizing between the $86,000-$88,000 support zone for the past 24 hours.
Analyst Alex Clary stated that Bitcoin’s momentum “looks impressive” for a breakout above the $88,000-$90,000 support zone. The cryptocurrency is exhibiting a bullish divergence on the Relative Strength Index (RSI), a V-shaped recovery pattern, and has breached its downtrend resistance.
According to the report, a breakout and reclamation of the essential $90,000 resistance could cause BTC to jump by 8 to 14%, reaching levels between $95,000-$100,000 that were lost back in February.
In the meantime, Daan Crypto Trades pointed out that Bitcoin “has remained relatively stable in the past few weeks compared to SPX.” The trader noted that BTC’s price has been closely correlated with the S&P 500 (SPX), which may clarify the recent drop and subsequent rebound of the flagship crypto.
However, he mentioned that Bitcoin is still trading “at a solid spot premium during this bounce,” indicating that a rise to new local highs is plausible if BTC keeps its current levels and reclaims the post-US election breakout range above $90,000.
Critical Levels BTC Must Maintain by Week’s End
As the market recovers on Monday, Analyst Rekt Capital cautioned that Bitcoin needs to close above $88,400 and $93,500 weekly to conclude its period of downside deviation.
The analyst elaborated that over the last five weeks, BTC has been trading between the two major bull market Exponential Moving Averages (EMAs), specifically the 21-week and 50-week EMAs.
Its recent price action has approached the 21-week EMA, around $88,400, indicating readiness “for a major trend decision.” The analyst suggests that Bitcoin must achieve a weekly close above this level and retest into support to aim for its Macro Range.
“This was precisely the confirmation Bitcoin needed back in mid-2021 when the price plummeted by -55%,” Rekt Capital observed, warning that “the situation could become volatile both upwards (trapping FOMO buyers during an upward wick) and downwards (as panic sellers may flood the market during a downward wick),” should history repeat itself.
A weekly close above this level “could initiate a continuation of the uptrend towards the Re-Accumulation Range Low of $93,500.” Furthermore, after re-establishing the 21-week EMA, Bitcoin will require a weekly close above the re-accumulation range low to “resynchronize with the Range.”
Nonetheless, Rekt Capital cautioned that “the Post-Halving Re-Accumulation Range indicates that mere Weekly Closes above $93,500 may not be enough” as it would necessitate “a successful post-breakout retest of the Re-Accumulation Range Low” to validate resynchronization.
He concluded that failing to retest and confirm the new support successfully could lead to BTC’s price losing this crucial level and experiencing another downward deviation.
