Bitcoin Surges 5% to $85,309 on Bullish Sentiment

Bitcoin has surged by 5% in the past 24 hours, reaching approximately $85,309. This upward movement follows a period of consolidation, indicating a resurgence of bullish sentiment in the market. The recent price increase is driven by growing investor confidence, bolstered by macroeconomic factors, institutional demand, and positive on-chain data.

Bitcoin's price action has surpassed its 200-day moving average (MA), currently at $84,632, signaling strong buying interest and a positive shift in momentum. However, with the Relative Strength Index (RSI) nearing overbought levels, there is a possibility of a short-term retracement despite the prevailing bullish sentiment.

Looking ahead, Bitcoin faces a significant resistance level at $90,000, a psychologically important price point that has previously acted as a barrier. A decisive breakout above this level, supported by substantial buying interest, could open the door for further gains, potentially pushing BTC toward $100,000 and even $120,000. Beyond $90,000, the next major resistance stands at $95,000, with traders closely monitoring for a move into price discovery mode if BTC breaks past previous all-time highs.

On the downside, $84,600 has emerged as an important support level. If Bitcoin fails to hold this, sellers may gain momentum, potentially dragging the price back to $80,000. Further downside pressure could see BTC retesting the $75,000 support area, where buyers are likely to step in.

On-chain data indicates that large investors, often referred to as "whales," are accumulating BTC, reinforcing a bullish outlook. Institutional participation and potential ETF inflows further support the market’s optimism. However, traders should remain cautious of profit-taking at higher levels and potential market-moving events such as inflation reports and regulatory developments, which could introduce volatility. If BTC maintains its strength, it could be on track to challenge new all-time highs in the coming months.