Bitcoin’s recent breakout past $87,000 points to a bullish trend, targeting potential rallies to $90,000-$92,000, a formerly solid support zone. The price surge follows a period of consolidation and indicates bullish momentum as key moving averages are surpassed. However, a fall to $85,000 could invalid the bullish outlook.
Bitcoin (BTC) recently broke through the $87,000 mark, indicating a bullish trend and a potential rally to the $90,000-$92,000 range, a previous strong support zone. This breakout follows a week-long consolidation phase between $83,000 and $86,000 and suggests renewed bullish sentiment as bulls regain control of the market.
The significant price movement indicates a shift from recovery efforts that began from the lows under $75,000 experienced on April 7. Historically, the $90,000-$92,000 range served as a safety net, preventing sharp declines from December to February before being breached in late February, which triggered a swift drop below $75,000.
The breakout is also supported by technical indicators; Bitcoin has invalidated a bearish trendline, evident in the daily chart which captures the sell-off from previous all-time highs. Importantly, Bitcoin’s price has surpassed the 30-day exponential moving average (EMA), reflecting a bullish momentum shift.
Looking forward, traders should monitor the $90,000-$92,000 target closely, given its previous significance. Additionally, the 200-day simple moving average (SMA) now sits at $88,245, marking a critical level for potential support. However, should Bitcoin’s price retract to $85,000 by the end of the day (UTC), this bullish outlook could be jeopardised.
