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Bitcoin’s trajectory has been notably resilient, with the cryptocurrency managing to stay above the critical support level of $85,500. This stability has set the stage for a potential upward movement, aiming to breach the $88,000 resistance zone. Recently, Bitcoin initiated a recovery wave that brought it above the $87,000 mark, now positioning it above this level and the 100 hourly Simple Moving Average (SMA). An interesting development has emerged on the hourly chart of the BTC/USD pair, courtesy of Kraken data, revealing a key bearish trend line with resistance near $88,200. Clearing this hurdle, alongside the $88,000 resistance, could pave the way for another price increase.
Bitcoin’s price support around $85,500 has provided a strong foundation from which it embarked on a recovery wave, breaking past the $86,200 resistance. This bullish momentum successfully lifted the price over the $87,000 resistance level. The recent upward move enabled it to surpass the 50% Fibonacci retracement level of the prior decline, which spanned from the $88,259 swing high to the $85,853 swing low. Currently, Bitcoin is trading above $86,500 and the 100 hourly SMA, presenting immediate resistance near $87,700 and the 76.4% Fib retracement level of the recent correction. A pivotal moment is approaching as Bitcoin tests key resistances at $88,000 and subsequently $88,200.
Should Bitcoin manage to close above the $88,200 resistance, it could signal a more significant upward trend, potentially leading the price to test the $89,500 resistance level. Success in breaching these resistances might even position Bitcoin towards the ambitious $90,000 mark or beyond, up to $90,500. This scenario hinges on Bitcoin’s ability to sustain momentum and break above critical resistance levels, thereby validating the bullish sentiments surrounding its market presence.
Conversely, Bitcoin faces a potential decline if it cannot overcome the $88,200 resistance zone. The immediate support level to watch is around $87,000, followed closely by significant support at $86,500. Should Bitcoin’s price retract further, the next support zone lies near $85,500, with critical support at the $85,000 mark and the main support at $84,500. The technical indicators suggest bullish momentum, as evidenced by the MACD accelerating in the bullish zone and the RSI for BTC/USD standing above the 50 level, pointing towards a cautiously optimistic outlook for Bitcoin’s immediate future. These dynamics underscore the market’s watchful eye on key resistance and support levels, which will dictate Bitcoin’s short-term market movements.
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