Aayush Jindal
Bitcoin price extended gains above $88,000. BTC is now consolidating gains near $90,000 and might see a minor decline in the near term.
- Bitcoin extended its increase and traded above the $88,000 zone.
- The price is trading above $86,500 and the 100 hourly Simple moving average.
- There is a connecting bullish trend line forming with support at $85,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it stays above the $85,000 zone.
Bitcoin Price Sets Another ATH
Bitcoin price started a fresh increase above the $85,000 level. BTC cleared the $86,500 resistance and traded to a new all-time high. It posted a high at $89,852 and is currently consolidating gains.
There was a minor decline below the $88,500 level. However, the price is still well above the 23.6% Fib retracement level of the upward move from the $78,555 swing low to the $89,852 high. There is also a connecting bullish trend line forming with support at $85,200 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $86,500 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $88,500 level. The first key resistance is near the $89,200 level.
A clear move above the $89,200 resistance might send the price higher. The next key resistance could be $90,000. A close above the $90,000 resistance might initiate more gains. In the stated case, the price could rise and test the $92,000 resistance level. Any more gains might send the price toward the $100,000 resistance level.
Start of Downside Correction In BTC?
If Bitcoin fails to rise above the $88,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $87,150 level.
The first major support is near the $84,500 level or the trend line or the 50% Fib retracement level of the upward move from the $78,555 swing low to the $89,852 high. The next support is now near the $82,000 zone. Any more losses might send the price toward the $80,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 80 level.
Major Support Levels – $87,150, followed by $84,500.
Major Resistance Levels – $88,500, and $90,000.
