Bitcoin Price Eyes More Gains After Breaking Above the $83,500 Zone

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 is showing signs of a recovery above the $83,500 zone against the US Dollar. BTC might attempt to clear the $85,500 resistance and continue higher.

Bitcoin price is continuing to trade in a bullish manner against the US Dollar. Buyers emerged in time and prevented a deeper decline.

Bitcoin Price Remains In A Strong Trend

Earlier today, we highlighted that the bulls are returning in the $82,500 zone. Bitcoin price formed a base and began to rise. It managed to clear the $83,000 and $83,500 resistance levels.

The bulls later pumped the price above the $84,500 resistance. A high was formed at $85,850 and the price 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 is near the $85,500 level. The next key resistance could be $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 By Bitcoin

If Bitcoin fails to rise above the $85,500 resistance zone, it could start another decline.

Immediate support on the downside is near the $84,200 level and the trend line. The first major support is near the $83,200 level.

The next support is now near the $82,200 zone and the 50% Fib retracement level of the upward move from the $78,600 swing low to the $85,850 high. 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

$83,500

Major Resistance Levels

$85,500

$85,850