Bitcoin Surges 4% Weekly, Breaks $87,000 Mark

Bitcoin (BTC) has once again surpassed the $87,000 mark, following a correction that brought prices down to $74,000 earlier this month. This price movement has sparked discussions among analysts about the potential outcomes for the leading cryptocurrency.

Crypto analyst Doctor Profit recently shared a detailed analysis on the social media platform X (formerly Twitter), outlining two possible scenarios for Bitcoin's price action. The first scenario involved a healthy correction to the $70,000 to $74,000 range, which has already materialized. The second scenario, a more severe downturn, could see Bitcoin dropping to the $50,000 to $60,000 range. Doctor Profit identified a critical threshold, the “Golden Line,” currently at $77,000, which has been resilient since the bull run began in early 2023. As long as Bitcoin remains above this level, the potential for a crash scenario is considered off the table.

Bitcoin is currently facing challenges in breaking through the “Hammer Line,” a critical resistance level. Historically, whenever Bitcoin has approached this line, it has faced immediate rejection. However, with strong support at the Golden Line, Doctor Profit is prepared for two potential scenarios. If Bitcoin can break above the Hammer Line, he plans to close his short position from $90,000 and maintain his spot position acquired at $77,000. Conversely, if Bitcoin dips back to the $77,000 level, he intends to purchase more, having already set limit orders to capitalize on this price point.

Looking ahead, Doctor Profit predicted that Bitcoin would likely continue to trade sideways within the range of the Hammer Line and Golden Line, specifically between $77,000 and $85,200. However, with Sunday’s spike, the Golden Line has been broken for the moment, pending a consolidation above it. Several bullish triggers remain on the horizon, including potential agreements between the US and China, possible Federal Reserve rate cuts, and an increase in M2 liquidity.

In the mid to long term, Doctor Profit believes Bitcoin is more likely to break out above the Hammer Line than to fall below the Golden Line. He cautioned against trading within the dangerous zone between these two critical levels, labeling it a “forbidden zone.” A breakout above the Hammer Line would signal the end of the correction and a renewed ascent toward new all-time highs, while a breakdown below the Golden Line could indicate a significant shift in market sentiment and the onset of a deeper correction.

While trading just above $87,200, BTC registers a nearly 4% surge in the weekly time frame. This upward trend suggests that Bitcoin may continue its bullish momentum, barring any unforeseen events or market disruptions.