Bitcoin Price Consolidation: Will Bulls Break Through $88,000?

Bitcoin’s price has found support above the $86,000 mark, currently consolidating and poised for a potential push beyond the significant $88,000 resistance. Following a recent recovery surge from the $86,800 level, BTC is trading slightly below $87,200, beneath the 100-hourly Simple Moving Average. A key bearish trend line, visible on the hourly BTC/USD chart (Kraken data), caps gains at approximately $88,000.

A decisive break above $88,000, followed by a move past $88,200, could ignite another bullish rally. However, the path to higher prices faces significant hurdles.

Analyzing Bitcoin’s Price Action

Bitcoin’s recent stability above $85,500 provided a base for a recovery wave, surpassing the $86,500 resistance. Bullish momentum pushed the price beyond $87,200, even exceeding the 61.8% Fibonacci retracement level of the previous decline from $88,260 to $85,852. Nevertheless, sellers remain active below $88,000, keeping the price currently beneath $87,500 and the 100-hourly SMA.

Immediate resistance is observed near $87,700 and the 76.4% Fibonacci retracement level (of the aforementioned swing). The primary resistance, however, lies near $88,000, coinciding with the bearish trend line. Further resistance is anticipated at $88,250. A successful close above this level could propel Bitcoin towards $88,800, and potentially beyond $90,000.

Potential for a Downward Trend?

Failure to overcome the $88,000 resistance could trigger a renewed decline. Immediate support is positioned around $86,800, followed by stronger support at $86,400 and $85,850. A more substantial drop could bring the price back toward the $85,000 or even $84,500 levels.

Technical Indicators

Hourly MACD: Currently showing bearish momentum.
Hourly RSI: Below 50, suggesting bearish sentiment.

Key Support and Resistance Levels

Support: $86,400, $85,850
Resistance: $88,000, $88,250