The recent range market for Bitcoin (BTC) has shifted to a bullish trend early Monday morning, with the focus now on the strong support level of $90,000.
Bitcoin’s price has surpassed $87,000, breaking out of the range between $83,000 and $86,000 that persisted for a week. The renewed leadership of bulls in the price trend suggests that a significant recovery for Bitcoin may be underway.
According to on-chain analytics tool Glassnode, the recent price movements of Bitcoin indicate the possibility of continuing its rise to the $90,000 level. The range between $90,000 and $92,000 served as a bottom for Bitcoin’s price from December to early February. This support zone was eventually broken in late February, leading to a drop below $75,000 in April.
Additionally, Glassnode reports that the cost basis indicator cluster shows little supply excess below the $90,000 range, suggesting that the market might rise rapidly before more holders reach their breakeven point and begin taking profits.
Factors that have pushed Bitcoin’s price up to $88,000 include a sharp decline in the US dollar, which has reached a three-year low, and further increases in gold prices. It is also believed that considerations regarding the potential dismissal of Federal Reserve Chairman Powell have contributed positively.
As a result, the first next target is $90,000. To reach this price level, Bitcoin may need to decisively surpass the 200-day simple moving average (SMA) at $88,200.
If the price drops to $84,000, the bullish outlook may become invalid, and Bitcoin could remain in its previous range. Bitcoin is facing a crucial moment to see if it can maintain support around the lower limit of $84,000, near the 50-day moving average (SMA).
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