Bitcoin Price Attempts a Comeback—Is a Recovery Rally on the Horizon?

Bitcoin price started a recovery wave from the $82,000 zone. BTC is back above $88,500 and might revisit the $95,000 resistance zone.

• Bitcoin started a fresh upward move from the $82,000 zone.
• The price is trading above $90,000 and the 100 hourly Simple moving average.
• There was a break above a connecting bearish trend line with resistance at $90,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another decline if it fails to clear the $95,000 resistance zone.

Bitcoin Price Starts Recovery

Bitcoin price started a fresh decline below the $92,000 level. BTC traded below the $90,000 and $88,000 support levels. Finally, the price tested the $82,000 support zone.

A low was formed at $81,434 and the price recently started a recovery wave. There was a move above the $85,000 and $88,000 resistance levels. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $95,000 resistance to the $81,434 low.

There was also a break above a connecting bearish trend line with resistance at $90,000 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading above $90,000 and the 100 hourly Simple moving average.

On the upside, immediate resistance is near the $91,800 level or the 76.4% Fib retracement level of the downward move from the $95,000 resistance to the $81,434 low. The first key resistance is near the $92,500 level. The next key resistance could be $93,500.

A close above the $93,500 resistance might send the price further higher. In the stated case, the price could rise and test the $95,000 resistance level. Any more gains might send the price toward the $96,200 level or even $98,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $92,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $88,000 level. The first major support is near the $86,200 level.

The next support is now near the $85,000 zone. Any more losses might send the price toward the $82,000 support in the near term. The main support sits at $80,000.

Technical indicators:

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

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

Major Support Levels – $88,000, followed by $85,000.

Major Resistance Levels – $92,000 and $93,500.

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