In recent market activities, Bitcoin’s price has been demonstrating a gradual upward movement, currently hovering above the $83,500 zone. Traders and investors are carefully watching the digital currency as it approaches the critical resistance zone of $85,200, which it must clear to continue its upward trajectory in the near term.
After finding a supportive base at $83,200, Bitcoin embarked on a recovery wave, indicating a resilient market presence. The cryptocurrency is now trading above the $84,500 mark, showing a positive trend above the 100 hourly Simple moving average. In a significant development, there has been a break above a connecting bearish trend line, with a resistance level at $84,650 on the hourly chart of the BTC/USD pair (data gathered from Kraken).
This break suggests the potential for another increase, provided the cryptocurrency can clear the $85,200 zone. It’s a key level to watch, as surpassing it could herald further gains.
However, the path to this potential increase has not been smooth. Bitcoin price underwent a decline below the $86,200 and $85,500 levels. It even dipped below the $84,000 level before the bulls stepped in. The price tested the $83,200 support, forming a low at $83,171, before initiating the aforementioned recovery wave.
The cryptocurrency managed to climb above the $84,500 resistance zone, breaking above the 50% Fib retracement level of the downward move from the $86,400 swing high to the $83,171 low. Furthermore, Bitcoin is now trading above the 100 hourly Simple moving average, a positive sign for Bitcoin advocates.
Looking forward, the immediate resistance is near the $85,200 level, which is also near the 61.8% Fib retracement level of the downward move from the $86,400 swing high to the $83,171 low. The first significant resistance is near the $85,500 level, with the next critical resistance possible at $86,500.
Should Bitcoin manage to close above the $86,500 resistance, the cryptocurrency could surge even higher, potentially testing the $87,200 resistance level. Further gains could even send the price toward the $88,800 level.
However, if Bitcoin does not manage to rise above the $85,200 resistance zone, another decline could be on the horizon. Immediate support on the downside is near the $84,500 level, with the first major support near the $84,000 level. The next crucial support is near the $83,200 zone. Further losses could send the price towards the $82,500 support in the near term, with the main support sitting at $81,800.
Looking at technical indicators, the Hourly MACD is now gaining pace in the bullish zone. The Hourly RSI (Relative Strength Index) for BTC/USD is now above the 50 level, suggesting a more bullish market sentiment. Major support levels to watch are $84,500 and $83,200, while significant resistance levels are at $85,200 and $85,500.
