Bitcoin Aims for $99,500 Resistance Level After 10.37% Weekly Rally

Bitcoin, the leading digital asset, is poised to retest a significant resistance level at $99,500, according to technical analysis. This level, which is psychologically important as it is close to the $100,000 mark, has been a key barrier for the cryptocurrency in recent weeks. Despite a crash below $80,000 following a tariff selloff, Bitcoin has shown resilience, recovering to a price of $84,750 at the time of writing. This recovery represents a 10.37% rally over the past seven days.

The current price of Bitcoin is still down 9.38% since the beginning of the year. However, a surge to $99,500 would put the cryptocurrency back in positive territory on a year-to-date basis. Several factors suggest that this price movement is a distinct possibility. Noted cryptocurrency technical analyst TradingShot outlined several arguments in an April 14 post on TradingView.

One key indicator is that Saturday’s close on the daily chart is above the asset’s 50-day moving average (MA). This is the first time this has occurred since February 3. Prior to this, the price had tested the MA six times, only to be rejected each time. Additionally, recent price action has breached a trendline of lower highs charted since the January 20 all-time high (ATH), albeit marginally.

Another significant factor is the bullish divergence observed in Bitcoin’s price action. Despite marking lower lows in terms of prices, the Relative Strength Index (RSI) has shown lower highs, indicating that the asset is not trending toward oversold levels. This divergence suggests that Bitcoin is likely to continue its upward trajectory rather than retreating to oversold conditions.

In such scenarios, traders often use a 2.0 Fibonacci extension level as a price target. In this case, the target sits at the $99,500 mark, which coincides with the Bitcoin resistance level that was in effect before the tariff selloff. However, it is important to note that this outcome is not guaranteed. Despite promising institutional adoption, approximately 25% of Bitcoin’s total supply is currently held at a loss. While a retesting of resistance levels could be positive, it would also provide an opportunity for risk-averse investors to liquidate their positions at a profit.