Bitcoin (BTC) continues to display a robust bullish sentiment. As long as it stays above the 30-day EMA of price highs, around $60,500, it could be the start of a rally toward the $90,000-$92,000 zone. This scores positive movement overall in what can be seen as a major momentum change for the top cryptocurrency. The recent bearish trendline invalidation marks history’s most bullish sell-off from all-time highs, as seen on the daily chart above.
BTC has finally broken out of a week-long correction between the range of $83,000 and $86,000, breaking above and out with conviction past the $87,000 level. The breakout of this narrow range is clear on the hourly chart, suggesting that bulls are regaining confidence to push price action in an aggressive direction. If ultimately confirmed, that would indicate a continuation of the recovery from those April 7 lows, which were below $75,000.
The $90,000-$92,000 range now appears to be the focus. This region served as a very firm support range from late December until early February, really stopping any declines in price cold. This support hub was eventually broken through in late February, causing a quick drop down to below $75,000. And even the 200-day simple moving average (SMA) is now at $88,245, adding to the bullish outlook.
Analysts warn that the breakout happened in the early Asian hours, a time usually marked by lower liquidity. That effectively permits a small number of orders to exert an outsized influence on spot prices. This could mean BTC might revisit $86K. It’s common for markets to return to breakout areas before launching larger retracements.
The bullish outlook might be or if prices drop below $85,000 again by the close of play (UTC). Investors and day traders alike are still very excited about what could quickly send prices soaring back down towards the $90,000-$92,000 level. This opportunity, however, does not go without risk.
