Bitcoin Price Starts Consolidating Above the $86500 Zone

Bitcoin price started a steady increase above the $86,500 zone. BTC is now correcting gains and might find bids near the $87,000.

Bitcoin price is showing signs of a recovery above the $86,500 zone as the bulls remain active.

Bitcoin Price Still In Recovery?

Bitcoin price is still trading in a range and it seems that the recent decline from the $88,500 high might be unfolding in a three-of-three wave structure, (3). The wave is currently unfolding towards the 50% Fib retracement level of the upward move.

The recent swing high was formed at $88,500 and the price corrected some gains. There was a move below the $88,000 level. The price dipped and tested the 50% Fib retracement level of the upward move from the $86,306 swing low to the $88,500 high.

Bitcoin price is now trading above $86,500 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $87,400 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $88,000 level. The first key resistance is near the $88,500 level. The next key resistance could be $88,800. A close above the $88,800 resistance might send the price further higher. In the stated case, the price could rise and test the $89,500 resistance level. Any more gains might send the price toward the $90,000 level or even $90,500.

BTC Price Could See More Losses

If Bitcoin fails to rise above the $88,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $87,400 level and the trend line. The first major support is near the $87,150 level or the 61.8% Fib retracement level of the upward move from the $86,306 swing low to the $88,500 high. The next support is now near the $86,500 zone. Any more losses might send the price toward the $85,000 support in the near term. The main support sits at $84,500.