Bitcoin Price Momentum Builds Above Key Resistance Levels

Bitcoin is experiencing a rising trend, currently above $86,500, and building momentum. It found support at $84,200 and is trading above significant moving averages. Key resistance levels to watch are $87,500 and $88,000, with potential gains towards $90,000. However, failure to breach $88,000 may lead to downside corrections, with immediate support at $87,000.

Bitcoin’s price is gradually trending upwards, stabilizing above the $86,500 mark, indicating building momentum. It found support at the $84,200 level and initiated a recovery, trading decisively above $85,500 as well as exceeding the 100-hour Simple Moving Average (SMA). The recent upward movement has been significantly aided by breaking above a bearish trend line that previously capped prices at $85,000 on the hourly BTC/USD chart (data sourced from Kraken). A continued ascent may occur should the price clear the $88,000 resistance.

Following a stable period above $83,200, Bitcoin has commenced an increase, surmounting the resistance at $84,200 and $85,000. This bullish rally led to a spike past $87,000, establishing a high of approximately $87,562. The current outlook suggests potential continued growth unless the price dips below the 23.6% Fibonacci retracement level, determined from the recent swing low of $84,007 to the peak at $87,562. Bitcoin remains positioned above $86,500, with immediate resistance detected at $87,500 and primary resistance looming at $88,000.

Should Bitcoin surpass the $88,800 resistance threshold, significant upwards momentum could lead to testing the $89,500 level, with further gains potentially propelling prices towards $90,000. However, if it struggles to breach the $88,000 resistance area, a correction may ensue. Immediate support is identified near $87,000, followed by major support at $86,750 and further support around the $86,000 level. Losses beyond these points could head towards $85,750, aligning with the 50% Fibonacci retracement level of the upward move from $84,007 to $87,562, while the primary support is positioned at $84,850.

From a technical analysis perspective, the hourly MACD indicates increasing bullish momentum, while the Relative Strength Index (RSI) stands above the neutral 50 level, affirming the bullish sentiment in the market. The critical levels to monitor include major supports at $86,750 and $86,000, along with resistance levels at $87,500 and $88,000, as these may dictate the short-term price movements for Bitcoin.