The price of Bitcoin has begun a consistent rise beyond the $86,500 mark. Currently, BTC is experiencing a correction in gains and may find support around the $87,000 level.
- Bitcoin has initiated a solid recovery wave above the $87,000 threshold.
- The price is currently trading over $86,800 and above the 100 hourly simple moving average.
- A bullish trend line is forming, providing support at $87,400 on the hourly chart for the BTC/USD pair (data feed from Kraken).
- The pair may begin another upward movement if it surpasses the $88,000 and $88,800 resistance levels.
Bitcoin Price Enters Consolidation Phase
The price of Bitcoin has maintained stability above the $84,200 mark. After forming a base, it recently initiated a recovery wave past the $86,500 resistance level.
Bulls drove the price above the $88,000 resistance, but bears became active near the $88,800 resistance zone. The recent swing high was recorded at $88,500, followed by a correction in gains, which led the price to dip below the $88,000 level.
The analysis shows the price tested the 50% Fibonacci retracement level of the upward movement from the $86,306 swing low to the high of $88,500. Currently, Bitcoin is trading above $86,500 and the 100 hourly simple moving average. There is also a bullish trend line forming with support at $87,400 on the hourly BTC/USD chart.
On the upward side, immediate resistance is situated around the $88,000 level, with the first key resistance near $88,500, and the next significant resistance possibly at $88,800.
A closure above the $88,800 resistance level could propel the price upward. In this scenario, the price might rise and test the $89,500 resistance level. Further gains could see the price approach the $90,000 level or even $90,500.
Potential Additional Losses for BTC?
If Bitcoin fails to break above the $88,000 resistance zone, it may start to decline again. Immediate support is located near the $87,400 level and the trend line. The first significant support is around the $87,150 level or the 61.8% Fibonacci retracement level of the upward movement from the $86,306 swing low to the $88,500 high.
The following support level is near the $86,500 zone. Further losses could push the price towards the $85,000 support level in the near term. The primary support is situated at $84,500.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum within the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level now.
Major Support Levels – $87,400, followed by $87,150.
Major Resistance Levels – $88,000 and $88,800.
