Bitcoin Surges 3.2% to $87,528, Eyes $90,000 Mark

Bitcoin's recent price movements have sparked speculation about its potential to reach $90,000. After a week of consolidation between $83,000 and $86,000, Bitcoin's price surged past $87,000, indicating a bullish trend. This breakout has shifted market focus to the $90,000 mark, which previously served as a strong support level from December to early February.

The on-chain analytics platform IntoTheBlock suggests that Bitcoin's price action indicates a potential continued rise to the $90,000 mark. The $90,000-$92,000 range acted as a floor for Bitcoin prices until late February when it was breached, leading to a drop below $75,000 in April. According to IntoTheBlock, the cost-basis indicator clusters show minimal overhead supply below the $90,000 range, suggesting that the market could advance rapidly before a significant number of holders reach their break-even point and start taking profits.

At the time of reporting, Bitcoin was up 3.2% in the last 24 hours, reaching $87,528, its highest level since April 2. This marks the third day of Bitcoin's recovery from April 19, resolving recent range trading between $83,000 and $87,000. The rapid rise in Bitcoin's price to $87,000 appears to be driven by a decline in the U.S. dollar index, which has fallen to a three-year low, and a rally in gold. As a result, the $90,000 mark is the initial next target. To reach this price level, Bitcoin might need to break decisively above the 200-day simple moving average at $88,245.

The bullish forecast could be invalidated if prices fall back to $85,000, with Bitcoin potentially remaining in its previous trading range. Market participants will be watching the daily SMA 50 at $84,066 to see if Bitcoin confirms it as support. The recent price action and technical indicators suggest that Bitcoin is poised for a significant move, with the $90,000 mark serving as the next key level to watch.