Bitcoin appears to be staging a recovery after finding solid support around the $77,000 level in early April. The cryptocurrency has since bounced higher and is currently trading at $87,435, showing signs of renewed bullish momentum after the recent correction from its previous highs.
Key Bitcoin Levels to Watch
The chart shows Bitcoin struggling with significant resistance around the $90,000 psychological level, which has capped upside attempts since late March. A decisive break above this resistance could open the path toward the next psychological barrier at the key $100,000 mark.
On the downside, immediate support sits at the current price level of $87,435, with stronger support at the recent lows around $77,000-$77,100. This support zone proved crucial in halting the downtrend in early April and served as a springboard for the current recovery attempt.
The horizontal resistance line drawn across previous swing highs around $90,000 remains a critical barrier that bulls need to overcome to confirm a resumption of the longer-term uptrend.
BTCUSD Technical Analysis
The moving average configuration on the chart shows the 100 SMA (blue line) positioned below the 200 SMA (red line), suggesting that the path of least resistance is to the downside while bearish pressure is in play. However, price has climbed above both moving averages as an early bullish signal, so these technical indicators could also hold as dynamic support on dips.
After reaching oversold territory in early April, the stochastic oscillator (middle panel) has risen sharply and is now approaching overbought levels, suggesting strong buying pressure in the near term. This indicator’s position indicates that buyers still have the upper hand, though the momentum may be nearing exhaustion as it approaches the upper boundary.
The RSI (lower panel) has also recovered from its April lows and is now trending higher, currently positioned in neutral-to-bullish territory around the 60 level. This suggests growing bullish momentum, but not yet at extreme levels that would signal an imminent reversal.
The overall technical picture from the indicators suggests that Bitcoin is in a recovery phase with solid momentum, though approaching levels where some resistance might be expected.
Bitcoin Price Outlook
Bitcoin’s recent price action suggests a period of consolidation following the sharp decline from December 2024 highs around $109,800. The formation of a double top pattern followed by a breakdown below $93,500 signaled bearish sentiment, but the strong bounce from the $77,000 support zone indicates that bulls haven’t completely lost control.
The current recovery appears to be a corrective move within the context of the recent downtrend, testing the broken support-turned-resistance levels. For the bullish case to strengthen, Bitcoin would need to overcome the resistance zone between $89,595 and $93,450.
If Bitcoin fails to break above this resistance zone and begins turning lower, it would suggest that sellers remain in control of the medium-term trend. In this scenario, another test of the $77,000 support area becomes likely. A break below this level could accelerate the decline toward deeper support zones.
However, if Bitcoin manages to push above the $93,450 level with conviction, it would invalidate the bearish implications of the double top pattern and potentially set the stage for a retest of the December 2024 highs around $109,800 in the coming months.
The fundamental backdrop remains supportive with anticipation of crypto-friendly policies under the Trump administration, particularly regarding the potential establishment of a “strategic crypto reserve.” However, the market appears to be in a “show me” phase, requiring concrete policy developments rather than mere speculation to fuel a sustained rally back to all-time highs.
