Bitcoin remains above $94,000 and is eyeing a potential breakout above $95,500. Key support exists at $93,500 and $94,200, while technical indicators show bullish momentum. A failure to break support could lead to a drop towards $92,900 and lower.
Bitcoin’s price is hovering just above the $94,000 mark, showing some signs of strength, with potential to breach key resistance around $95,500. Specifically, it’s managed to stay supported at $93,500, which is a critical level. The cryptocurrency is currently trading above both $94,000 and the 100 hourly Simple Moving Average, which adds to its bullish outlook.
Some technical patterns are emerging, like a bullish trend line forming with support set at around $94,200 on the hourly chart for the BTC/USD pair according to Kraken’s data. A significant push past $95,500 may initiate further rallies, potentially guiding Bitcoin to new highs.
In recent trading, Bitcoin was able to rise from $93,500 to surpass resistance levels of both $94,000 and $94,200. The bulls managed to lift the price to a recent peak of $95,488. However, following this peak, corrections occurred, pushing the price back under $94,500 as it dropped below the 50% Fibonacci retracement from a swing low of $92,900 up to the previous high.
Despite the drop, bulls showed resilience near the $93,500 support zone which aligns with the 76.4% Fibonacci retracement level, providing a cushion. Now, Bitcoin trades at $94,200, confirming some bullish momentum, while immediate resistance resides around $95,250, with a critical level at $95,500. If Bitcoin manages to surpass $96,250, we might see additional upward movement towards $97,500 and even $98,800.
However, we should note that if Bitcoin struggles to break through the $95,500 barrier, it could lead to another downward correction. Key support sits nearby at $94,200 and the trend line, but if that fails, it could slip towards $93,500, and then possibly down to $92,900. Major support rests at $91,200 if further declines occur.
Technical indicators are providing some optimism at this stage. The hourly MACD is gaining momentum in the bullish zone, and the Relative Strength Index (RSI) for BTC/USD is above 50, signaling a generally positive outlook. To summarise, the current critical support levels sit at $94,200 and $93,500, while breakout resistance levels are identified at $95,250 and $95,500.
