Bitcoin’s price has entered a correction phase after reaching a local high of $88,750, presenting what technical analysts suggest could be an optimal entry point around $86,500. This price action comes as Bitcoin recently broke above the crucial $88K level, demonstrating continued market strength despite short-term volatility.
Key Bitcoin Price Levels to Watch
The leading cryptocurrency has established several critical support and resistance levels that traders should monitor:
- Current support: $86,800 (bullish trend line)
- Secondary support: $86,200 (50% Fibonacci level)
- Key resistance: $87,500 followed by $88,000
- Previous high: $88,750
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Technical Analysis Breakdown
The current price action shows several bullish indicators despite the short-term correction:
- Price remains above the 100-hour Simple Moving Average
- Bullish trend line support at $86,800
- RSI holding above 50, indicating maintained bullish momentum
- MACD showing potential for continued upside
Potential Scenarios and Entry Points
Two primary scenarios are emerging for Bitcoin’s next move:
Bullish Scenario
- Break above $87,500 could trigger run to $88,800
- Potential extension to $89,500 and $90,000
- Key entry point around current $86,500 support
Bearish Scenario
- Failure to break $87,500 could trigger decline
- Support levels at $85,500 and $85,000
- Major support at $84,500 must hold
Expert Analysis and Market Outlook
As market sentiment remains strongly bullish near $90K, this dip could represent an attractive entry point for traders looking to establish long positions. The technical structure suggests the overall uptrend remains intact despite the current correction.
FAQ
Is this a good time to buy Bitcoin?
The current price level around $86,500 represents a potential value zone with strong technical support, making it an attractive entry point for traders comfortable with the risk.
What’s the next major resistance level for Bitcoin?
The immediate resistance lies at $87,500, with $88,000 and $88,800 serving as the next major hurdles before a potential test of $90,000.
Could Bitcoin drop further from here?
While possible, strong support exists at $85,500 and $84,500, making significant downside limited unless these levels break.