After months of challenges, Bitcoin (BTC) buying forces finally managed to break above the $70,000 breakout level this week, setting new record highs above $76,000.
With cryptocurrency-friendly Donald Trump back in the White House, the most pressing question for traders has become: What is the next resistance level that could hold back the buying forces?
Bitcoin Price Prediction After Current Top
To determine this level, one can resort to analyzing the price chart. For example, when drawing a trend line from the April 2021 peak at $64,898 and the November 2021 peak around $69,000 and continuing forward, we notice that the resistance level is located around $90,000.
Trend lines are essential in technical analysis, helping traders identify overall trends and potential support and resistance levels. For Bitcoin, an ascending trend line from previous highs can be a target for sell or take profit orders, turning this level into potential resistance due to increased convergence in trader activity as the price approaches $90,000.
The recent move above the $70,000 level, which represents the disengagement from the extended trading pattern, indicates the resumption of the broad uptrend from the October 2023 lows. The breakout and positive reversal in the MACD, which hints at strengthening buying momentum, suggest that resistance at $90,000 could be just around the corner.
It is worth noting that a move below the weekly low at $66,824 will invalidate the bullish technical outlook. It is worth noting that options market activity points to potential resistances at $80,000 and $100,000.
Solana Bitcoin Pair SOL/BTC Hack
Optimism about the possibility of regulatory easing under Trump’s presidency has led to further gains in altcoins like Solana (SOL). Notable here is the SOL/BTC price, which has risen by nearly 11% this week, indicating a possible positive breakout from the long sideways trading pattern.
A breakout from the triple consolidation, represented by the two converging trend lines, would mean that buying forces are finally ready to drive the price action and open the door to the 2021 highs. The weekly candle on Sunday (UTC) must close above the upper trend line to confirm the breakout.
