The price of Bitcoin has begun a recovery phase from the $82,000 region. BTC is currently trading above $88,500 and may test the $95,000 resistance level again.
- Bitcoin initiated a fresh upward trend from the $82,000 area.
- The price is now above $90,000 and surpasses the 100 hourly Simple Moving Average.
- A breakout occurred above a bearish trend line with resistance at $90,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair may experience another drop if it cannot break through the $95,000 resistance zone.
Bitcoin Price Initiates Recovery
The price of Bitcoin saw a decline below the $92,000 mark, trading under the $90,000 and $88,000 support levels. Eventually, the price approached the $82,000 support area.
A low of $81,434 was established, after which a recovery wave began. The price rebounded past the $85,000 and $88,000 resistance levels, with bulls pushing prices beyond the 50% Fibonacci retracement level of the downward movement from $95,000 to $81,434.
Additionally, there was a break above a bearish trend line with resistance at $90,000 on the hourly chart of the BTC/USD pair. Currently, Bitcoin is trading above $90,000 and the 100 hourly Simple Moving Average.
On the upside, immediate resistance is found close to the $91,800 mark or the 76.4% Fibonacci retracement level of the downward move from $95,000 to $81,434. The first significant resistance level is around $92,500, with the next key level likely at $93,500.
A close above the $93,500 resistance could lead to further upward movement. In this scenario, the price might test the $95,000 resistance level. Continued gains could push the price toward $96,200 or even $98,000.
Could BTC Face Another Decline?
Should Bitcoin fail to break through the $92,000 resistance area, it may initiate a new downward trend. Immediate support on the downside lies around the $88,000 level, with the first major support near $86,200.
The next support zone is around $85,000. Additional losses may lead to a drop toward the $82,000 support in the short term, while the main support is positioned at $80,000.
Technical Indicators:
Hourly MACD – The MACD is currently gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.
Major Support Levels – $88,000, followed by $85,000.
Major Resistance Levels – $92,000 and $93,500.
