Bitcoin (BTC) Shows Strong Recovery Signs, Climbing Nearly 5% and Reclaiming Important Support Levels

Bitcoin has shown strong recovery signs over the past week, climbing nearly 5% and reclaiming important support levels.

Bitcoin price displayed impressive resilience over the past week, recovering nearly 5% and managing to reclaim crucial support levels. The flagship cryptocurrency is currently engaged in an attempt to pierce through the formidable resistance zone at $88,000-$90,000.

Its journey has seen multiple rejections from the $84,000-$85,000 area over the past fortnight. However, during the weekend, Bitcoin successfully closed above the $86,000 mark.

Remaining within the stifling $86,000-$88,000 support zone for the past 24 hours, Bitcoin's stability has sparked cautious optimism among investors regarding its near-term prospects.

During the start-of-week pump, BTC tested higher levels, reaching a biweekly high of $88,765. Nonetheless, it encountered resistance in testing the crucial $90,000 zone once again as bullish momentum slowed down.

Analyst Alex Clary highlighted several positive technical indicators for Bitcoin, noting a bullish divergence in the Relative Strength Index (RSI). He also observed a V-shaped recovery pattern and a breakout above a downtrend resistance.

#BTC Daily Update

Bullish momentum looks awesome for to break back above the Blue Support👀

✅Bull Div by RSI ✅V-Recovery✅Break through Descending Resistance

In case of breakout I am looking for $95k & $100k to be retested📈#Bitcoin $BTC

According to Clary, if Bitcoin manages to break above and reclaim the crucial $90,000 resistance level, it could jump between 8% to 14%. This would potentially push prices toward the $95,000-$100,000 levels that were lost in February.

Another analyst, Rekt Capital, highlighted key technical levels that Bitcoin needs to close above on a weekly basis. These include $88,400 and $93,500, which would end its downside deviation period.

Bitcoin has been consolidating between two major bull market Exponential Moving Averages: the 21-week EMA (around $88,400) and the 50-week EMA.

Recently, the cryptocurrency’s price action has moved closer to the 21-week EMA, suggesting it is ready “for a major trend decision.” A weekly close above this level followed by a successful retest could target higher price ranges.

However, Rekt Capital cautions that market conditions could become volatile. There might be price swings both on the upside and downside, potentially trapping FOMO buyers and causing panic sellers to exit positions.

For a true bullish continuation, Bitcoin would need to close above the re-accumulation range low of $93,500. It would also need to successfully retest this level as support to confirm a new uptrend.

BTC is now testing the 21-weekly EMA (yellow) which is also the key level for a new cycle up.

It'll need to close above this level AND hold it on retest to continue up.

But a move above this 21-weekly EMA would likely bring about more volatile conditions.