Bitcoin Struggles at $87,000 Resistance, 15% Gain Predicted

Bitcoin has been struggling to regain its footing after a significant drop from the $90,000 level a month ago, currently hovering around $83,000. The premier cryptocurrency has been unable to break out of the $82,000 – $87,000 range over the past few weeks, reflecting a mere 1% decline in the past 24 hours and minimal change over the past seven days.

Popular crypto analyst Ali Martinez shared an analysis on the X platform, predicting a potential 15% upward move for Bitcoin. This bullish prediction is based on the formation of a symmetrical triangle on the four-hour Bitcoin price chart. This pattern is characterized by a diagonal falling upper trendline and a diagonally rising lower trendline. As the price narrows towards the apex of the triangle, there is a likelihood that BTC will breach the upper trendline for a breakout. If successful, this could see Bitcoin register a bullish 15% move to around $95,000.

Martinez also highlighted that Bitcoin might need to overcome a major resistance level to resume its bull run. This is based on the formation of a “confluence zone,” which represents a price range where multiple technical resistance levels meet. This confluence range, forming on the daily timeframe of the Bitcoin price chart, consists of the 50-day and 200-day moving averages (MAs) and a descending trendline. The 50-day MA acts as a gauge of short- to mid-term trend direction and as a dynamic support and resistance level, while the 200-day MA is used as a long-term trend indicator. A break above it is considered a major bullish reversal signal. The Bitcoin price has been forming lower highs since reaching the all-time high of $108,786, and has been trading in a consolidation range over the past few weeks, with the bulls unable to make a sustained upward run.

Investors should pay extra attention to the $87,000 level, as the convergence of three technical resistance indicators increases the likelihood of a price rejection at this level. The Bitcoin price had already tried breaching this mark in the past week before correcting back to around $82,000. Despite the recent show of strength in the face of growing macroeconomic uncertainty, the bullish case for Bitcoin remains somewhat uncertain until it can overcome this resistance level.