Bitcoin Surges 2% to $84,500, Breaking Key Resistance

Bitcoin's price has been steadily increasing, surpassing the $83,500 mark. The cryptocurrency found support at $83,200 and initiated a recovery phase, trading above $84,500 and the 100 hourly Simple Moving Average. This upward movement was further confirmed by a break above a connecting bearish trend line with resistance at $84,650 on the hourly chart of the BTC/USD pair.

Bitcoin's price has recently experienced a decline, dropping below the $86,200 and $85,500 levels, and even dipping below $84,000. However, the bulls stepped in, and the price tested the $83,200 support, forming a low at $83,171. Since then, the price has started a recovery wave, climbing above the $84,500 resistance zone and breaking above the 50% Fib retracement level of the downward move from the $86,400 swing high to the $83,171 low.

Currently, Bitcoin is trading above $84,500 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is near the $85,200 level, which is close to the 61.8% Fib retracement level of the downward move from the $86,400 swing high to the $83,171 low. The first key resistance is near the $85,500 level, with the next key resistance potentially at $86,500. A close above the $86,500 resistance might send the price further higher, potentially testing the $87,200 resistance level and even rising toward the $88,800 level.

However, if Bitcoin fails to rise above the $85,200 resistance zone, it could start another decline. Immediate support on the downside is near the $84,500 level, with the first major support near the $84,000 level. The next support is now near the $83,200 zone, and any further losses might send the price toward the $82,500 support in the near term. The main support sits at $81,800.

Technical indicators suggest that the Hourly MACD is now gaining pace in the bullish zone, while the Hourly RSI (Relative Strength Index) for BTC/USD is now above the 50 level. Major support levels are at $84,500 and $83,200, while major resistance levels are at $85,200 and $85,500.