Bitcoin Price Attempts Recovery
Bitcoin price started a recovery wave above $82,000. BTC is now consolidating and might aim for a move above the $85,500 resistance.
After an extended decline, Bitcoin price found support near the $75,000 zone. A low was formed at $74,501 and BTC started a recovery wave. There was a move above the $78,500 and $80,000 resistance levels.
The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $88,868 swing high to the $74,501 low. More importantly, there was a break above a key bearish trend line with resistance at $83,300 on the daily chart.
Bitcoin price even climbed above the $84,500 resistance and spiked above the 50-day simple moving average (blue). However, there was no close above the 50-day simple moving average (blue).
The price faced resistance near the $85,500 zone and the 76.4% Fib retracement level of the downward move from the $88,868 swing high to the $74,501 low. BTC is now consolidating below the 50-day simple moving average (blue) and above the same trend line.
It seems like there could be a downside push toward the $81,500 level before a fresh increase. The price must stay above the same trend line to start a fresh increase. On the upside, immediate resistance is near the 50-day simple moving average (blue) at $84,500.
The first major resistance is near the $85,500 level. The main resistance could be near the $88,850 zone. A close above the $88,850 resistance might spark more upsides. The next stop BTC price could be the $92,250 level, above which the price could rise toward the $95,000 level.
A daily close above the $95,000 resistance zone could push the price toward the $97,750 level and the 1.618 Fib extension level of the downward move from the $88,868 swing high to the $74,501 low. Any more gains might call for a test of $100,000.
Another Decline In BTC?
Conversely, Bitcoin price might struggle to clear $84,500 or $85,500 and start another decline. Immediate support on the downside is near the $82,500 level.
The first major support is near the $81,650 level. A downside break and close below the $81,650 support might spark more losses and send the price further lower. In the stated case, Bitcoin could test the $78,000 support. The next key support could be $77,200, below which BTC might slide toward the $75,000 zone.
Overall, Bitcoin is facing a major hurdle near $84,500 and $85,500. If BTC stays below $85,500, there could be a fresh decline toward the $78,000 support.