Bitcoin Price Next Move Hinges on Support—Break or Bounce?

Bitcoin price started a steady increase above the $86,500 zone. BTC is now correcting gains and might find bids near the $87,000.

• Bitcoin started a decent recovery wave above the $87,000 zone.

• The price is trading above $86,800 and the 100 hourly Simple moving average.

• There is a connecting bullish trend line forming with support at $87,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).

• The pair could start another increase if it clears the $88,000 and $88,800 levels.

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Bitcoin Price Starts Consolidation

Bitcoin price remained stable above the $84,200 level. BTC formed a base and recently started a recovery wave above the $86,500 resistance level.

The bulls pushed the price above the $88,000 resistance level. However, the bears were active near the $88,800 resistance zone. The recent swing high was formed at $88,500 and the price corrected some gains. There was a move below the $88,000 level.

The price dipped and tested the 50% Fib retracement level of the upward move from the $86,306 swing low to the $88,500 high. Bitcoin price is now trading above $86,500 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $87,400 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $88,000 level. The first key resistance is near the $88,500 level. The next key resistance could be $88,800.

A close above the $88,800 resistance might send the price further higher. In the stated case, the price could rise and test the $89,500 resistance level. Any more gains might send the price toward the $90,000 level or even $90,500.

More Losses In BTC?

If Bitcoin fails to rise above the $88,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $87,400 level and the trend line. The first major support is near the $87,150 level or the 61.8% Fib retracement level of the upward move from the $86,306 swing low to the $88,500 high.

The next support is now near the $86,500 zone. Any more losses might send the price toward the $85,000 support in the near term. The main support sits at $84,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $87,400, followed by $87,150.

Major Resistance Levels – $88,000 and $88,800.