Bitcoin has recently surged past $85,000, capturing the attention of market watchers and strengthening its short-term technical outlook. As the cryptocurrency neared the resistance zone between $85,300 and $85,700, investors turned their focus to this area, while the $80,000 to $81,000 range became a crucial support zone.
Two Key Price Levels in Short Term
According to technical analysis shared by SamGold_BTC on TradingView, a well-known charting platform, a previously downward trendline on the BTC/USD chart has been breached. The $80,000 to $81,000 range has transitioned from an area of intense supply to one offering potential support.
The range of $85,300 to $85,700 is closely monitored as a main resistance level, and surpassing it might lead Bitcoin to the $85,500 to $86,000 range.
On Monday, Bitcoin hit the $85,000 mark for the first time since January, according to The Block. CoinGlass data highlighted that at least $750 million in liquidations occurred in the crypto market in the past 24 hours, primarily from short positions.
This indicates that forced liquidation positions significantly influenced the recent uptick, yet suggests caution as it doesn’t guarantee the trend will persist with the same intensity.
Will Technical Support Prove Strong?
The $80,000 to $81,000 bracket has become a pivotal reference in recent price structures. The rebound witnessed from buying activities at this level bolstered its perception as a support area. Historical foundation points initiated in the $60,000s have extended well above $70,000, underpinning this view.
A potential pullback to the $80,000 mark might test the durability of this recent rise as a support foundation. Failure to uphold this structure might direct the market towards lower support levels.
Technical Indicators Point to Continued Strength?
The overall technical indicators suggest an optimistic trend. TradingView summaries indicate 13 buy signals against 1 sell signal among moving averages. The broader technical overview shows 15 buy, 10 neutral, and 1 sell signals.
Bitcoin remains above its 10, 20, 30, 50, 100, and 200-day moving averages, indicating strong technical support beneath the current price levels. However, with the RSI at 67, Stochastic %K at 93, and Commodity Channel Index at 148, the momentum is balanced, hinting at a possible short-term correction.
- Bitcoin’s price surge has not been mirrored by equal network activity increases.
- Santiment noted new and active addresses are not growing significantly, unlike previous rises.
- Post the September break, open interest rose by about 9% but stabilized thereafter.
Analyst QmoCrypto proposes the movement towards $85,000 might be part of a lower peak structure post-Bitcoin’s 2025 high near $126,000. Levels like $77,000, $73,000, $64,000, $57,000, and $50,000 stand out as possible support zones if downward movement occurs. Conversely, a retained support at $80,000 to $81,000 and a sustained breakthrough of $85,300 to $85,700 could solidify the current bullish framework.
