What’s Next for Bitcoin After Surging Past $87K? Key Levels to Watch

Bitcoin has surged above $87,000, gaining 3.21% in 24 hours. Key support is at $77,000 (Golden Line) and resistance at $85,200 (Hammer Line). Analyst Doctor Profit believes macroeconomic factors could drive prices higher but cautions against trading in the volatile range between these levels. Further movements will be critical to determining market direction.

Bitcoin has recently surged to $87,556, marking a 3.21% increase within 24 hours and a surge in trading volume to $26.48 billion. This rebound follows an earlier correction to $74,000, which some analysts deemed a necessary cooldown amidst an ongoing rally. Notably, crypto analyst Doctor Profit has identified the $77,000 “Golden Line” as essential support and the $85,200 “Hammer Line” as significant resistance on this upward journey.

Doctor Profit shared key insights, asserting that Bitcoin’s trajectory hinges on two critical levels. He described the potential for further price movements, highlighting a past forecast of either a dip to the $70,000–$74,000 range—now realised—or a severe drop, termed a “Black Swan” scenario, to between $50,000 and $60,000. He asserts that maintaining prices above the Golden Line mitigates risks of pronounced declines, supporting bullish market sentiment.

Currently, Bitcoin’s price faces challenges at the Hammer Line, a historical resistance level hindering further upward movement. Doctor Profit is prepared for flexibility; if a breakthrough occurs, he will liquidate short positions initiated at $90,000 while retaining long positions acquired at $77,000. Should prices retrace, he plans to increase his holdings at the Golden Line, viewing it as a prime buying opportunity.

Doctor Profit anticipates Bitcoin will likely fluctuate within a range of $77,000 to $85,200 in the short-term, pending continued momentum from the recent surge. The market atmosphere appears bullish, driven by macroeconomic developments, such as potential US-China agreements and favourable discussions on interest rate reductions from the Federal Reserve, which may enhance investor confidence.

In the mid to long term, Doctor Profit leans towards a price ascension past the Hammer Line over a fall below the Golden Line, while warning traders of a “forbidden zone” in trading between these significant levels, given the inherent market uncertainty this range presents. A breakthrough past the Hammer Line could signify the end of corrections and the potential to set new all-time highs. Conversely, a breach below the Golden Line may indicate a shift in market sentiment, signalling the beginning of a more profound downturn.