Bitcoin Price Surge: Can It Reach $90,000 Next?

Bitcoin’s bullish trend indicates a potential surge towards $90,000, having recently broken above $87,000 after a consolidation phase. Minimal overhead supply identified by IntoTheBlock supports a possible price advance. Notably, Bitcoin’s price movements are correlated with declines in the U.S. dollar index and recent market trends.

Bitcoin (BTC) recently exhibited bullish movement, prompting speculation of reaching $90,000, a level previously recognised as significant support. After breaking above $87,000, which followed a consolidation phase between $83,000 and $86,000, signs indicate that a major recovery may be underway for Bitcoin.

On-chain analytics from IntoTheBlock suggests that Bitcoin’s upward trajectory could extend towards the $90,000 mark. This range had served as a strong support floor from December to early February before a breach led to a decline below $75,000 in April. The current analysis indicates minimal overhead supply just below $90,000, hinting at a potential swift advance in price.

At the time of reporting, Bitcoin had risen by 3.2% over the previous 24 hours, reaching $87,528 and marking its peak since April 2. The price increase, following a recovery initiated on April 19, was spurred by a significant decline in the U.S. dollar index (DXY), which dropped to a three-year low, coupled with a gold market rally.

For Bitcoin to secure a move towards $90,000, it must decisively overcome the 200-day simple moving average (SMA) presently located at $88,245. However, any downturn towards $85,000 could challenge this bullish projection, potentially leading to a reversion to previous trading levels. Observers will monitor the daily SMA 50 at $84,066 as a crucial support indicator.