Bitcoin Price Holds Firm, Upside Extension Now in Trader Focus

[Ben Graham]

Bitcoin price started a decent recovery wave above $88,000. BTC is now consolidating below $89,000 and might aim for a fresh increase.

• Bitcoin started a recovery wave above the $87,500 zone.
• The price is trading above $87,500 and the 100 hourly Simple moving average.
• There is a bullish trend line forming with support at $87,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it settles above the $89,100 zone.

Bitcoin Price Eyes More Gains

Bitcoin price attempted a fresh recovery wave above $87,500 and $88,000. BTC even cleared the $88,800 resistance and tested the $90,500 hurdle.

A high was formed at $90,552 and the price is now consolidating gains. There was a minor decline below $89,000 and $88,500. The price dipped below the 23.6% Fib retracement level of the upward move from the $84,420 swing low to the $90,552 high.

Bitcoin is now trading above $87,800 and the 100 hourly Simple moving average. There is also a bullish trend line forming with support at $87,900 on the hourly chart of the BTC/USD pair.

If the price remains stable above the trend line, it could attempt more gains. Immediate resistance is near the $89,100 level. The first key resistance is near the $89,500 level. The next resistance could be $90,500. A close above the $90,500 resistance might send the price further higher. In the stated case, the price could rise and test the $92,000 resistance. Any more gains might send the price toward the $92,500 level. The next barrier for the bulls could be $93,200 and $93,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $89,500 resistance zone, it could start another decline. Immediate support is near the $88,000 level and the trend line. The first major support is near the $87,500 level.

The next support is now near the $86,750 zone and the 61.8% Fib retracement level of the upward move from the $84,420 swing low to the $90,552 high. Any more losses might send the price toward the $85,450 support in the near term. The main support sits at $84,500, below which BTC might accelerate lower in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $88,000, followed by $87,500.

Major Resistance Levels – $89,500 and $90,500.