Table of Contents
Bitcoin could see a price surge of 14% if this key level holds
Bitcoin (BTC), which has been gaining strength in recent weeks, is now up nearly 5%. It also regained key levels of support. Analysts believe that BTC, which is currently hovering around $88,000, could see a price rise of 14% if it continues to break out.
Bitcoin’s recovery and key resistance levels
Bitcoin has successfully recovered this crucial zone after being repeatedly rejected in the range of $84,000 to $85,000 over the last two weeks. BTC has surged by 4.7% over the last seven days. It closed the week at $86,000, signaling a renewed bullish trend.
BTC tried to breach the $89,000 barrier earlier this week. It reached a high of $88,765 for two weeks before selling pressure set in. Bitcoin is still able to hold its current position in the $86,000-88,000 range of support, which analysts see as a solid foundation for future upward movement.
Analysts’ Predictions: a 14% price jump?
Alex Clary, a crypto analyst, noted that Bitcoin appears to have enough momentum to move above $88,000-$90,000. BTC’s recent downward trend could soon be overshadowed by key indicators such as a bullish Divergence in the Relative Strength Index (RSI), a V-shaped Recovery, and a Break Above.
Clary believes that Bitcoin’s price could increase by 8%-14% if a breakout is confirmed above $90,000. The last time this price range appeared was in February, before Bitcoin went through its recent correction.
Market analyst Daan Crypto Trades noted that Bitcoin was closely correlated to the S&P 500. The stock market has been mirrored by the flagship cryptocurrency, explaining BTC’s recent rise following an overall financial recovery.
Important levels to watch for Bitcoin’s uptrend
Rekt Capital is another well-known and respected analyst who stressed the importance of Bitcoin closing above $93,500 or $88,400 every week. These levels are major resistance points and could decide whether BTC’s upward trend continues or if it faces another downward spiral.
Rekt Capital reports that Bitcoin’s price has been stuck between the Exponential Moving Average (EMA) of 21 and 50 weeks for the last five weeks. Breaking above the 21-week EMA of $88,400 may set up a bigger trend change. BTC will need to successfully retest this level to confirm that the breakout is sustainable.
In the past, Bitcoin needed a confirmation of this kind in mid-2021 following a crash of 55%. BTC’s volatility could increase if history repeats itself, both to the downside (causing panic selling) as well as on the upside, triggering Fear of Missing Out (FOMO).
Potential Scenarios for BTC Price Movement
- The optimistic scenario: the price of Bitcoin may rise until its lowest reaccumulation level, $93,500, in the case of a successful weekly close above $88,400. If BTC overruns this value, it is highly probable that BTC will reach its previous peak of $100,000..
- If Bitcoin can’t manage to keep support above $88,400, it might go down instead, and there will be a correction or consolidation.
Last Thoughts
Bitcoin’s recent upturn reveals that the upswing is becoming too bullish. The rise of BTC will only happen if the previous resistance levels are attained. The analysts are hopeful that BTC will move up beyond $90,000. This initiative might boost BTC between 8 and 14% of its original price and it would bring it back to the $95,000-$100,000 level.
According to investors, knowledge of Bitcoin’s final weekly listings would be a plus to their asset portfolio, especially to ascertain when to make the next big move. At a macro scale, the future appears bright for BTC, but the external factors such as macroeconomics and market conditions could have a major impact on its trajectory.
