Bitcoin Surges 6.88% Past $86.8K Resistance Level

Bitcoin's price has recently surged past the $86.8K mark, a significant local resistance level that has been closely watched by traders. Since late February, the cryptocurrency has been trading within a range of $79.2K to $94.3K, with the midpoint at $86.8K. This breakout has sparked both optimism and caution among market participants, as the price now faces potential resistance at higher levels.

The $86.8K mark has been a critical point for Bitcoin, with traders closely monitoring its movements. A drop below $83K could trigger a new bearish trend, while a sustained break above $86.8K could signal the start of a bullish trend. The struggle to break through this resistance level has been evident, with signs pointing to potential bearish pressure. This resistance level is a key area to watch, as the price could either break out or respect it, leading to further price movements.

Higher liquidity targets sit at $86.8K, $88K, and $90K, areas that traders are watching closely for movement. The 365-day MVRV ratio, a metric used to gauge the market's sentiment, has also been signaling a potential breakout. This ratio, which compares the market value of an asset to its realized value, has been trending upwards, indicating that the market may be in a bullish phase. However, it is important to note that this is a forecast and not a guarantee of future price movements.

Bitcoin's price trajectory has been bullish over the past week. Compared to last Tuesday’s low at $81.1K, BTC was up 6.88% at press time. For long-term investors, news that the realized price was rising meant that HODLers were still largely profitable. If the realized price continued to rise, it could come alongside a BTC price push toward $150K-$180K. As for the next few days of trading, the price move beyond the mid-range resistance was a positive sign.

On the 4-hour chart, the price action remains bullish, supported by higher highs and higher lows over the past week. The CMF indicated bullish momentum with a reading of +0.16, reflecting strong capital inflows. Meanwhile, the OBV has gradually risen over the past ten days but has yet to reach the local highs observed on the 3rd of March. Key resistance levels to monitor are $90.5K and $94.3K, representing Bitcoin’s immediate bullish targets.

The 1-week liquidation heatmap showed rejection at the $88.2K liquidity cluster on 24th of March. Another significant liquidity pocket has formed between $88.9K and $89.7K, just below the $90K psychological level. A strong magnetic zone was identified at $83K, but its distance from the current BTC price of $86.6K suggests an upward move is more likely. This short-term bullish outlook is further supported by technical analysis of the 4-hour chart.

However, a bearish reversal could occur in the $89K-$89.7K range. Swing traders should consider taking profits in this region. The next resistance at $90.5K may present a challenging hurdle for the bulls. In summary, Bitcoin's recent break above $86.8K has been a significant event for the cryptocurrency market. While the price has faced resistance at this level, the potential for further gains remains. Traders are closely watching the $86.8K, $88K, and $90K levels for movement, as these are key areas that could signal the next direction of the market. As always, it is important for traders to stay informed and make decisions based on the latest market data and analysis.