The Bitcoin price is facing support and resistance at crucial levels, and a breakout above the Bollinger band resistance could indicate further movement.
Bitcoin’s price has recently surged, climbing to $88,344 amid a 1.7% increase over the past 24 hours. The digital asset has experienced significant price volatility, with a daily range between $85,373.53 and $90,164.9.
Looking at its performance over the last 14 days, Bitcoin has seen a solid 5.1% plunge. With a market cap of over $1.76 trillion, it continues to lead the crypto space as an institutionally recognized asset. As Bitcoin hovers near the $90k mark, market watchers are eager to see whether this momentum will continue or if price consolidation is on the horizon.
Will Bitcoin’s Momentum Continue?
Bitcoin’s daily chart highlights key technical indicators that point to a potential reversal or continuation of the current trend.
The price is currently preparing to test the middle line of the Bollinger Bands, which sits at $89,971.79. A rejection at this level could send the price back toward the lower Bollinger Band around $85,774.46, but a break above the middle band may signal further upward movement towards the upper band at $94,169.13.
Support currently lies near the $85,360 level, where Bitcoin has found support several times over the past month. A break below this level could open the door to the lower support around $82,500. On the resistance side, $89,971.79 serves as an immediate resistance, with $94,169.13 being a crucial level to watch for any potential breakout.
Additionally, the MACD indicator shows a bullish momentum shift with the blue line attempting to cross above the orange line. However, the MACD is still slightly in the negative territory, indicating that Bitcoin needs to build more strength before confirming any sustained upward move.
Can Bitcoin Reclaim $120,000?
Elsewhere, analyst Captain Faibik suggests that Bitcoin is poised for a potential bounce in the near future, indicating that a reversal could be imminent. According to Faibik, the next key level to watch is the resistance at $93,000, which could serve as a crucial hurdle in determining whether Bitcoin can continue its upward trajectory.
With Bitcoin currently hovering below the $90,000 psychological level, the market is looking for signs of momentum to push past this critical barrier. Faibik’s target for Bitcoin is set at $120,000, with the expectation that a breakout above the descending expanding wedge channel and the $93,000 resistance could push Bitcoin towards this target. To reach $120,000, Bitcoin will need to surge by about 35.83% from the current price of $88,344.