Bitcoin Price Shows Strong Recovery: Could a Surge Be Coming?
Bitcoin ($BTC ) is gaining momentum after recovering losses above the $95,000 level. The price is showing signs of strength, and if it clears the immediate resistance at $98,000, it could potentially continue its upward trajectory.
Key Technical Developments:
- Price Action: Bitcoin initiated a recovery above the $93,200 resistance, breaking through several key levels including $94,200 and $95,000. It even surpassed the $96,500 mark and briefly touched $97,719 before consolidating above the 23.6% Fibonacci retracement level of the recent move from the $92,588 low to the $97,719 high.
- Support Levels: A bullish trendline is forming with support near $95,000 on the hourly chart, and Bitcoin is trading above the $95,500 mark, alongside the 100-hour simple moving average. The trendline aligns with the 50% Fibonacci retracement of the upward move from $92,588 to $97,719, reinforcing the support at these levels.
- Resistance Levels: On the upside, immediate resistance is found at $97,500, with a key hurdle at $98,000. A break above $98,000 could trigger further gains, with the next resistance at $98,800, and possibly pushing toward the $100,000 level if momentum holds.
Possible Downsides:
If Bitcoin fails to overcome the $98,000 resistance, a correction could occur. The first major support zone is near $96,500, followed by the $95,000 region. A deeper pullback could see the price testing the $94,550 or $93,200 levels.
Technical Indicators:
- MACD: The hourly MACD is gaining bullish momentum, suggesting the potential for continued upward movement.
- RSI: The RSI for BTC/USD is above the 50 mark, indicating that buying pressure remains intact.
Summary:
Bitcoin is in a strong recovery phase above $95,000, with clear upside potential if it clears the $98,000 resistance. However, failure to break that level could lead to a retracement toward the key support levels. Traders should watch these levels closely for a clearer market direction in the coming sessions.
