Bitcoin’s price has recently seen a fresh increase, bouncing back from a dip in the $78,000 support zone. The cryptocurrency must clear a significant hurdle at the $95,000 mark to continue its upward trajectory in the short term. The price of Bitcoin has risen above the $90,000 resistance zone and is currently trading above $92,000, with its value buoyed by the 100 hourly Simple Moving Average (SMA).
Notably, a connecting bullish trend line has formed, offering support at $89,750 as per the hourly chart of the BTC/USD pair. This data feed is provided by Kraken, a prominent digital asset exchange. However, the pair might face a fresh decline if Bitcoin fails to maintain its footing above the $87,000 zone.
Before this recent rally, Bitcoin had extended its losses below the $80,000 mark. The digital asset traded as low as $78,011 before the bulls began to rally. Bitcoin saw a strong increase, moving past the resistance levels of $85,000 and $88,000. The price surged over 10%, clearing the $90,000 level and testing the $95,000 resistance. The high was marked at $95,000 and Bitcoin is now consolidating these gains.
At present, the cryptocurrency is trading near the 23.6% Fib retracement level of the upward move, taking into account the swing low at $84,500 to the high at $95,000. An immediate resistance is seen near the $94,000 level, with the first key resistance at $95,000.
The next key resistance could potentially be $96,500. A close above this level could instigate a further increase in price. In such a scenario, the price could rise and test the $98,500 resistance level, with further gains potentially pushing it towards the coveted $100,000 level or even to $100,500.
However, if Bitcoin fails to rise above the $95,000 resistance zone, it could begin a fresh decline. Immediate support on the downside is near the $92,000 level, with the first major support near the $90,000 level. The next support is seen near the $88,500 zone and the 50% Fib retracement level of the upward move from the $84,500 swing low to the $95,000 high. Any further losses might push the price towards the $87,000 support. The main support sits at $85,500.
Technical indicators show that the MACD is gaining pace in the bullish zone while the RSI for BTC/USD is now above the 50 level. This paints an optimistic picture for the digital asset. Major support levels are $92,000, followed by $90,000. Major resistance levels are found at $94,000 and $95,000.
