Bitcoin Price Advances Cautiously, Bulls Probe for Upside Control

[Ben Graham]

Bitcoin price found support and started a recovery wave above $88,000. BTC is now rising and might attempt to surpass the $89,000 resistance.

• 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 is a bearish trend line forming with resistance at $88,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it trades above the $89,500 zone.

Bitcoin Price Faces Resistance

Bitcoin price managed to stay in a positive zone above $85,500 and started a recovery wave. BTC gained pace for a move above the $87,000 and $87,200 levels.

The price climbed above the 50% Fib retracement level of the downward move from the $89,484 swing high to the $86,611 low. The bulls even pushed the price above $88,000. Bitcoin is now trading above $88,000 and the 100 hourly Simple moving average.

If the price remains stable above $88,000, it could attempt a fresh recovery wave. Immediate resistance is near the $88,750 level and the 76.4% Fib retracement level of the downward move from the $89,484 swing high to the $86,611 low. Besides, there is a bearish trend line forming with resistance at $88,750 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $89,500 level. The next resistance could be $89,800. A close above the $89,800 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 $91,500 and $92,000.

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. The first major support is near the $87,250 level.

The next support is now near the $86,500 zone. Any more losses might send the price toward the $85,500 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 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 – $88,000, followed by $87,250.

Major Resistance Levels – $88,750 and $89,500.