Key Takeaways:
- Bitcoin price is up over 25% and now trades well above the 50-week simple moving average (blue).
- BTC/USD cleared a major contracting triangle with resistance at $67,850 on the weekly chart.
- The price is now testing the $88,800 resistance and might see a short-term pullback.
Bitcoin rallied above $80,000 and traded to a new all-time high at $88,829. The price is now consolidating and facing minor hurdles.
Bitcoin Price Gains Over 25% In A Week
After Trump’s victory, Bitcoin gained bullish momentum. It all started after BTC cleared a major contracting triangle with resistance at $67,850 on the weekly chart. It opened the doors for a steady increase above the $70,000 resistance zone.
The price cleared the last swing high at $73,666 and traded to a new record high. The upward move gained pace after it cleared the 1.236 Fib extension level of the downward move from the $73,666 swing high to the $49,130 low.
The weekly chart of BTC suggests the bulls are in full control, and the price is well above the 50-week simple moving average (blue). Bitcoin is now reaching the first meaningful resistance at $88,800. It represents the 1.618 Fib extension level of the downward move from the $73,666 swing high to the $49,130 low.
If there is a downside correction, the price might find support near the $86,500 level. The first major support is near $82,500, and the next major support is near the $80,000 handle.
A weekly close below the $80,000 could start a larger downside correction. BTC could drop toward the last major resistance (now support) at $73,600 in the stated case. Any more losses might send the price toward the $62,500 level in the medium term.
More Upsides In BTC?
Conversely, Bitcoin might continue to rise after a short-term consolidation phase. On the upside, immediate resistance sits near the $88,800 level. The first major resistance is near the $90,000 level.
If the bulls succeed in clearing the $90,000 resistance, it could be a strong bullish signal. The next key resistance could be near the $94,500 level. A close above the $94,500 resistance could set the stage for a fresh surge. In the stated case, the bulls could aim for a move above the $100,000 milestone level.
Overall, Bitcoin is reaching the first key resistance at $88,800. If the bulls remain in action, BTC could easily drift toward the $100,000 milestone level in the coming days.
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