Bitcoin price pared all gains and fell below $88,000. BTC is currently recovering losses from the support at $86,700, but faces a number of hurdles.
Bitcoin has started a wave of recovery above the $88,000 zone. The price is trading above $88,000 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair (data feed from Kraken), the pair has broken out of the descending channel with resistance at $87,300. The pair is likely to continue rising above the $87,500 zone.
Bitcoin price maintains bid near support
Bitcoin price attempted a new rally above $88,500 but failed. BTC pared all gains and fell 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 new rally. There was a clear move above the resistance at $88,000 and the 50% Fib retracement level of the decline from the swing high of $90,298 to the low of $86,700.
Additionally, on the hourly chart of the BTC/USD pair, the pair has broken out of the descending channel with resistance at $87,300. Bitcoin is currently trading above $88,000 and its 100-hour simple moving average.
If the price remains stable above $87,500, it could attempt another wave of recovery. Immediate resistance is near the $88,500 level. The first major resistance is near the $88,900 level, or the 61.8% fibritracement level of the decline from the swing high of $90,298 to the low of $86,700.
The next resistance level could be at $89,500. If the price closes above the $89,500 resistance, the price could move higher. In the above case, the price may rise and test the $90,200 resistance level. Further upside could push the price closer to the $90,500 level. The next hurdles for the bulls could be $91,200 and $91,500.
Will BTC fall again?
If Bitcoin fails to rise above the $89,000 resistance zone, further decline could begin. Immediate support is near the $87,850 level. The first major support is near the $87,500 level.
The next support is currently located near the $86,700 zone. Any further losses could send the price towards the $85,500 support in the short term. The main support is at $85,000, below which BTC could accelerate its decline in the short term.
Technical indicators:
Hourly MACD – The MACD is currently pacing in the bullish zone.
Hourly RSI (Relative Strength Index) – BTC/USD’s RSI is currently above the 50 level.
Major support level – $87,500, then $86,700.
Key resistance levels – $88,500 and $89,000.
