Bitcoin Surges 2.5% to $83,500, Faces $85,500 Resistance

Bitcoin price has initiated a recovery wave, surpassing the $83,500 mark. The cryptocurrency is currently consolidating and may face challenges in settling above the $85,500 zone. Bitcoin managed to maintain its position above the $82,000 support level, forming a base and initiating a recovery above the $82,500 resistance zone. The bulls successfully pushed the price above the $83,500 and $84,200 resistance levels, with a high formed at $85,487. The price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $81,320 swing low to the $85,487 high.

Bitcoin is currently trading above $83,500 and the 100 hourly Simple moving average. A connecting bullish trend line is forming with support at $84,550 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $85,200 level, with the first key resistance near the $85,500 level. The next key resistance could be $85,850. A close above the $85,850 resistance might send the price further higher, potentially testing the $86,650 resistance level and even rising toward the $88,000 or $88,500 levels.

If Bitcoin fails to rise above the $85,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $84,500 level and the trend line. The first major support is near the $83,500 level and the 50% Fib retracement level of the upward move from the $81,320 swing low to the $85,487 high. The next support is now near the $82,850 zone. Any more losses might send the price toward the $82,000 support in the near term, with the main support sitting at $80,500.

Technical indicators show that the MACD is now losing pace in the bullish zone, while the RSI for BTC/USD is now above the 50 level. Major support levels are at $84,500 and $83,500, with major resistance levels at $85,200 and $85,500. The price of Bitcoin is currently in a consolidation phase, and its ability to break through the $85,500 resistance zone will be crucial in determining its next move. If it can successfully break through this resistance, it could potentially test higher levels, such as $86,650, $88,000, or even $88,500. However, if it fails to do so, it could face a fresh decline, with support levels at $84,500, $83,500, $82,850, $82,000, and $80,500. The technical indicators suggest that the price is currently in a bullish zone, but the MACD is losing pace, which could indicate a potential reversal in the near term. The RSI is above the 50 level, which suggests that the price is in a bullish trend. However, it is important to note that the price is currently consolidating, and its next move will depend on its ability to break through the resistance levels.

Ask Aime: What will happen to Bitcoin if it breaks above $85,500?