Bitcoin Surges 2% to $82,500, Eyes $87,200 Resistance

Bitcoin has initiated a recovery phase, surging past the $82,500 mark. The cryptocurrency is currently on an upward trajectory, with potential targets set at $86,500 and $87,200. This recovery follows a period of stability above the $82,000 level, where Bitcoin established a base before breaking through the $83,500 resistance.

The bulls have been active, driving the price above the $85,000 resistance level. However, bears have shown resistance near the $86,500 zone, leading to a temporary correction below the $85,000 level. Despite this, Bitcoin has maintained its position above the $85,200 support level, which is also the 50% Fibonacci retracement level of the upward move from $83,667 to $85,591.

Technical indicators suggest a bullish momentum. The hourly MACD is gaining pace in the bullish zone, while the RSI for BTC/USD is above the 50 level. Immediate resistance is near the $86,000 level, with key resistances at $86,500 and $87,200. A close above $87,200 could propel the price towards $88,500, and potentially even $90,000.

However, if Bitcoin fails to surpass the $86,500 resistance, it could face a decline. Immediate support is at $85,500, with major supports at $85,200 and $84,500. Further losses could see the price testing the $83,000 support, with the main support sitting at $81,500.

Analysts have noted that the formation of a connecting bullish trend line with support at $85,200 on the hourly chart of the BTC/USD pair could indicate a potential upward move. This, coupled with the bullish momentum suggested by technical indicators, paints a picture of a cryptocurrency market that is showing stronger recovery signs, with an upside move in focus.