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Bitcoin price saw a short-term correction below the $90,000 zone. BTC is now rising again and the bulls could now target a move above $94,000.
- Bitcoin started a new increase from the $86,600 zone.
- The price is trading above $88,000 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $91,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if it crosses the $91,000 resistance zone.
Bitcoin price aims higher
Bitcoin price started a short-term downward correction below the $90,000 level. BTC was trading below the $88,000 level before the bulls appeared.
A low was formed at $86,622 and the price is now recovering higher. There was a move above the USD 90,000 level. A high was reached at $91,839 and the price is now consolidating. It tested the 50% Fib retracement level of the upward move from the $86,621 swing low to the $91,839 high.
Bitcoin price is now trading above $88,000 and the 100 hourly Simple Moving Average. On the upside, the price could encounter resistance near the USD 91,000 level. A connecting bearish trendline is also forming with resistance at $91,000 on the hourly chart of the BTC/USD pair.
The first major resistance is near the $91,850 level. A clear move above the USD 91,850 resistance could push the price higher. The next major resistance could be at USD 92,500.
A close above the $92,500 resistance could lead to more gains. In the said case, the price could rise and test the USD 93,450 resistance level. Any further gains could send the price towards the USD 95,000 resistance level.
Another drop in BTC?
If Bitcoin fails to rise above the USD 91,000 resistance zone, a downward correction could occur. The immediate downside support is near the $89,250 level.
The first major support is near the $87,850 level or the 76.4% Fib retracement level of the upward move from the $86,621 swing low to the $91,839 high. The next support is now near the $86,620 zone. Any further losses could send the price towards the USD 83,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 89,250, followed by USD 87,850.
Major resistance levels – $91,000 and $92,500.