Bitcoin (BTC) rallied above $89,000

Bitcoin (BTC) rallied above $89,000 on April 22, its highest level since early March, buoyed by strong spot demand

Bitcoin (BTC) price rose above the $89,000 mark on April 22, reaching its highest level since early March, driven by strong spot demand during US trading hours on April 21.

However, the recovery faced a serious challenge in breaking above the $90,000 psychological barrier as sell-side liquidity remained in this area, presenting an obstacle to further gains.

Bitcoin price faces stiff resistance on the upside

Data from Cointelegraph Markets Pro and TradingView shows that BTC price had been steadily moving toward the $89,000 level over the last six hours, and there are no immediate support levels to watch out for as the cryptocurrency trades in a vacuum.

This lack of support could lead to a swift move lower if the sell-side pressure increases.

“BTC is closing in on the big $ 90 K-$91 K horizontal area which acted as the previous range low,” said popular trader Daan Crypto Trades in an April 22 post on X.

The trader explained that the price had swept the $89,000 level as it was consolidating below it.

Moreover, the 200-day SMA is currently located just above this level, adding to its significance.

According to Daan Crypto Trades, the price needs to overcome these barriers in order to confirm a breakout.

However, if the price fails to break above this zone and instead returns to test the 200-day SMA on the lower timeframes, then it could be an indication that the buyers are losing momentum.

Bitcoin price breaking $91-$92K is key — Analyst

CryptoQuant’s head of Research, Julio Moreno, said that the traders’ onchain realized price between $91,000 and $92,000 is the real test for Bitcoin bulls.

According to Moreno, the traders’ realized price usually acts as resistance when the crypto market is in a bearish trend, which is the current situation of Bitcoin.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.