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Bitcoin's (BTC) recent range play resolved bullishly early Monday, shifting focus to $90,000, which had previously been a strong support level.
Bitcoin's price soared beyond $87,000, breaking out of a weeklong consolidation range of $83,000 to $86,000. The bulls' renewed readiness to lead the price movement suggests that a major recovery of Bitcoin might be underway.
According to on-chain analytics platform IntoTheBlock, Bitcoin's recent price action suggests the potential for a continued move higher to the $90,000 mark. The $90,000-$92,000 range served as the floor for Bitcoin prices from December to early February. The support zone was eventually breached in late February, resulting in a fall to below $75,000 in April.
Tomiwabold OlajideAccording to IntoTheBlock, the cost-basis indicator clusters reveal little overhead supply below the $90,000 range, implying the market could advance quickly before a larger tranche of holders reaches break-even and begins taking profit.
Bitcoin rebounds
At press time, BTC was up 3.2% in the last 24 hours to $87,528, reaching its highest level since April 2. Bitcoin extended its recovery from April 19 to the third day, reaching $87,799 in early Monday. The move marked a resolution to recent range trading between $83,000 and $87,000. The rapid rise in the Bitcoin price to $87,000 appears to be driven by a decline in the U.S. dollar index (DXY), which has fallen to a three-year low, and a rally in gold.
Gamza KhanzadaevAs a result, the $90,000 mark is the initial next target. To reach this price level, Bitcoin might need to break decisively above the 200-day simple moving average (SMA) at $88,245.
The bullish forecast risks being invalidated if prices fall all the way down to $85,000, with Bitcoin potentially remaining in its previous trading range. Eyes will be on the daily SMA 50 at $84,066 to see if Bitcoin confirms it as support.
Vladislav Sopov
Dan Burgin