Bitcoin Price Approaches Key Hurdle

Bitcoin price is showing strength above the $90,000 pivot zone. BTC is consolidating gains and might aim for an upside break above $96,200.

Bitcoin Price Analysis

In the past few days, Bitcoin price saw a decent increase from the $74,500 support zone. BTC climbed above the $80,000 and $85,000 resistance levels to move into a positive zone. More importantly, the price remained stable and supported above the 50-week simple moving average (blue).

The bulls even pumped the price above the $90,000 pivot level. It opened the doors for a move above the 50% Fib retracement level of the downward move from the $109,590 swing high to the $74,501 low.

The weekly chart of BTC suggests the price now shows signs of strength above the $92,000 level and is well above the 50-week simple moving average (blue).

However, the bulls now face a crucial challenge near the $95,500 and $96,200 levels. There is also a key contracting triangle forming with resistance at 96,500 on the weekly chart. It coincides with the 61.8% Fib retracement level of the downward move from the $109,590 swing high to the $74,501 low.

A converging triangle is a continuation pattern that occurs when price trades in a narrower and narrower range. It is usually characterized by two converging trend lines, with the upper trend line acting as resistance and the lower trend line providing support.

In this case, the triangle has been forming since August 2023, with price bouncing between the upper and lower trend lines. The lower trend line of the triangle offers support, currently around the $80,000 level.

The bulls will attempt to push the price above the triangle resistance zone, which could set the pace for a larger increase. Immediate resistance on the upside above the triangle sits at $100,000. The first key resistance could be $101,300.

A clear move above the $101,300 level could set the pace for a steady increase. In the stated case, the price could rise and test of the $105,000 resistance level. If the bulls succeed in clearing the $105,000 resistance, it could be a strong bullish signal. The next key resistance could be near the $109,600 level. Any more gains might send Bitcoin toward the $112,000 level and a new all-time high.

Downside Correction In BTC

If Bitcoin fails to clear the triangle resistance, there could be a short-term pullback. Immediate support is mentioned at the $91,500 level. The first major support is seen at the $90,000. The next major support sits at the $87,200 level.

A weekly close below the $87,200 level could start a larger decline. In the stated case, BTC could drop toward the $85,000 pivot level. The main support sits near the triangle’s lower trend line and the 50-week simple moving average (blue) at $80,000.

A downside break and close below the $80,000 support could spark heavy losses. The next key support could be $75,000. Any more losses might call for a move toward the $68,000 zone in the coming weeks.

Overall, Bitcoin shows positive signs but approaches a key hurdle at $96,500. If the bulls remain in action, BTC could clear the hurdle and start a major surge. If not, the bears could aim for a test of the $85,000 support zone.