Bitcoin Price Resists Breakdown, Support Level Holds—for Now

[Ben Graham]

Bitcoin price trimmed all gains and dived below $88,000. BTC is now recovering losses from the $86,700 support but faces many hurdles.

• Bitcoin started a recovery wave above the $88,000 zone.
• The price is trading above $88,000 and the 100 hourly Simple moving average.
• There was a break above a declining channel with resistance at $87,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it stays above the $87,500 zone.

Bitcoin Price Remains Bid Near Support

Bitcoin price attempted a fresh increase above $88,500 but failed. BTC trimmed all gains and dived below $88,000. However, the bulls were active near the $86,700 zone.

A low was formed at $86,700, and the price recently started a fresh increase. There was a clear move above the $88,000 resistance, and the 50% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.

Besides, there was a break above a declining channel with resistance at $87,300 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $88,000 and the 100 hourly Simple moving average.

If the price remains stable above $87,500, it could attempt a fresh recovery wave. Immediate resistance is near the $88,500 level. The first key resistance is near the $88,900 level or the 61.8% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.

The next resistance could be $89,500. A close above the $89,500 resistance might send the price further higher. In the stated case, the price could rise and test the $90,200 resistance. Any more gains might send the price toward the $90,500 level. The next barrier for the bulls could be $91,200 and $91,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $89,000 resistance zone, it could start another decline. Immediate support is near the $87,850 level. The first major support is near the $87,500 level.

The next support is now near the $86,700 zone. Any more losses might send the price toward the $85,500 support in the near term. The main support sits at $85,000, below which BTC might accelerate lower in the near term.

Technical indicators:

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

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

Major Support Levels – $87,500, followed by $86,700.

Major Resistance Levels – $88,500 and $89,000.