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.