The litecoin mining sitecryptocurrency market witnessed Bitcoin's impressive climb beyond $85,500 this week, though the digital asset now shows signs of consolidation after testing resistance near $88,800.
BTC established strong support above $83,200 before initiating its upward trajectory
The 100-hour moving average currently provides dynamic support near $86,200
A developing trendline on hourly charts suggests potential support around $86,800
Market participants await decisive moves beyond $87,500-$88,000 resistance cluster
Technical Landscape for Bitcoin
Following its consolidation phase, Bitcoin demonstrated renewed strength by breaking through multiple resistance levels. The digital currency successfully converted the $85,500 zone from resistance to support, creating a foundation for its subsequent advance toward yearly highs.
The recent pullback from $88,750 represents a 23.6% Fibonacci retracement of the latest upward impulse. This correction brings Bitcoin back to test previous resistance-turned-support levels while maintaining its position above critical moving averages that often influence short-term sentiment.
Market technicians observe several constructive developments despite the current retracement. The formation of higher lows since the $83,665 swing low suggests underlying demand remains present. Additionally, the preservation of the 100-hour moving average as support indicates the current pullback may represent healthy profit-taking rather than trend reversal.
Critical levels to monitor include immediate resistance near $87,200, followed by more significant barriers at $87,500 and $88,000. Successful conversion of these levels into support could pave the way for retests of recent highs and potential extensions toward $89,500-$90,000 psychological resistance zones.
Conversely, failure to hold current support levels might see Bitcoin test deeper retracement levels near $85,500. Market participants will closely watch trading volume and order book depth around these key technical areas for clues about potential continuation or reversal scenarios.
