Bitcoin (BTC) Price Starts a Fresh Increase Above the $83,500 Zone

Bitcoin price started a fresh increase above the $82,500 zone. BTC formed a base and gained pace for a move above the $83,000 and $83,500 resistance levels.

Bitcoin price started a fresh increase above the $83,500 zone. BTC is now consolidating gains and might attempt to clear the $85,500 resistance.

Bitcoin Price Eyes More Gains

After forming a base and pasting the $83,000 and $83,500 resistance levels, Bitcoin price started a fresh increase. The bulls pumped the price above the $84,500 resistance. A high was formed at $85,850 and the price recently started a downside correction. There was a move below the $84,000 support. The price dipped below the 23.6% Fib retracement level of the upward move from the $78,600 swing low to the $85,850 high.

However, the bulls were active near the $83,000 zone and the price recovered losses. Bitcoin price is now trading above $83,500 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $84,200 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $85,000 level. The first key resistance could be $85,500. The next key resistance is at $86,200. A close above the $86,200 resistance might send the price further higher. In the stated case, the price could rise and test the $87,500 resistance level. Any more gains might send the price toward the $88,000 level.

Another Rejection In BTC?

If Bitcoin fails to rise above the $85,500 resistance zone, it could start another decline. Immediate support on the downside is at the trend line and $84,200. The first major support is at $83,200.

The next support is now at the 50% Fib retracement level of the upward move from the $78,600 swing low to the $85,850 high, around $82,200. Any more losses might send the price toward the $81,500 support in the near term. The main support sits at $80,800.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $84,200, followed by $83,500.

Major Resistance Levels – $85,500 and $85,850.