Bitcoin is testing key resistance levels after breaking the 20-day SMA, with analysts expecting potential upside momentum.
Currently, Bitcoin is trading at $91,747, reflecting a 2.7% gain over the last 24 hours. The first-born cryptocurrency has experienced a daily range from $87,887.18 to $91,673.07, demonstrating a tight price movement within the past 24 hours.
Over the past week, Bitcoin has increased by 6.4%, and its 14-day performance shows a 4.7% rise. With a market cap of $1.825 trillion, Bitcoin still remains a dominant force in the midst of price volatility.
As Bitcoin continues its ascent, it is testing key resistance levels, with the $92.4K mark acting as a critical point. Will BTC bulls conquer this resistance?
Bitcoin Price Analysis
Interestingly, the 4-hour chart for Bitcoin against the U.S. Dollar reveals some critical price action. The price is moving within a range where the support level is at $88,282 and resistance at $92,244.
Bitcoin is currently moving toward the upper Bollinger Band, which serves as the next resistance point in case of a bullish trend in the upcoming hours. If Bitcoin can surpass this resistance level, the price could extend its gains, potentially targeting the $93,000 mark or higher.
Further, the Relative Strength Index (RSI) is at 57.49, indicating that Bitcoin is not yet in the overbought zone but is approaching it. This suggests room for further upside momentum, especially if the price pushes through resistance.
If Bitcoin fails to break above $92,244, the price might consolidate or reverse, with $89,000 providing immediate support. A fall below this level could trigger a test of the next support around $88,282.
Now, the market is closely watching these levels, as they could determine whether Bitcoin will continue its current trend or face a pullback, particularly as it already tested and conquered the 20-day moving average for direction.
Can Bitcoin Reach $125K?
Elsewhere, in an X post accompanied by another 4-hour Bitcoin chart, analyst Captain Faibik suggests that nothing has changed, and Bitcoin is still in a broadening wedge pattern, indicating a potential breakout to the upside later in the week. The price is moving within the converging trend lines, with the lower boundary of the wedge acting as support and the upper boundary acting as resistance.
This broadening wedge typically signals increased volatility, and a breakout above the upper trend line could lead to a significant move, with the analyst predicting a potential rally towards the $125,000 mark.
Currently, Bitcoin is testing the upper boundary of this wedge, sitting above the $94,000 level. If the price breaks through this resistance, it could open the door to a larger upward movement.