Bitcoin has recently stabilized around the $95,000 level, but to initiate a significant upward movement, it needs to surmount the resistance level located at $96,500. Currently, Bitcoin is managing to hold its position above the $93,500 area, reflecting a cautious approach among traders.
Despite these gains, Bitcoin ’s price continues to hover below both the critical resistance at $96,500 and the 100-hour simple moving average. The digital currency has shown some potential for upward momentum after breaking through a short-term bearish trend line that previously capped its progress at $96,000. However, a recent attempt to surpass the $96,500 resistance was met with selling pressure, leading Bitcoin to dip below the $94,500 support level and even hitting a low of $93,565.
Following this decline, there has been a noteworthy rebound. Bitcoin has climbed above the $95,000 level and crossed the 50% Fibonacci retracement level of the downturn from the swing high of $97,395 to the recent low of $93,565. Although it momentarily broke above the bearish trend line at $96,000, it still faces significant resistance near the $96,500 level. This level coincides with a crucial Fibonacci retracement level, making it a challenging barrier for Bitcoin to breach.
Should Bitcoin manage to clear the $96,500 resistance convincingly, it could pave the way for a rally toward $98,000, and a sustained close above that level may bring the price closer to the $100,000 level. Conversely, failure to overcome the $96,500 barrier could trigger a downward correction, with immediate support found around $95,500 and further support at $93,500. A deeper decline could see Bitcoin testing the $92,000 level in the near term.
Several technical indicators are worth noting. The hourly MACD is losing momentum within the bullish zone, while the RSI has dipped below the critical 50 level, which may reflect weakening bullish sentiment. Key support levels are outlined at $95,500 and $93,500, while resistance levels are firmly set at $96,500 and $98,000.
