This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Bitcoin’s (BTC) recent range play resolved bullishly early Monday, shifting focus to the $90,000-$92,000 range, which was previously a strong support zone.
The leading cryptocurrency by market value rose past $87,000, convincingly breaking out of a week-long consolidation between $83,000 and $86,000. The renewed willingness among the bulls to lead the price action indicates the resumption of the recovery from the April 7 lows under $75,000.
It also means potential for a continued move higher to the $90,000-$92,000 range, which acted as the floor, arresting price drops from December to early February. The support zone was eventually breached in late February, spurring a rapid decline to under $75,000.
The range breakout is seen on the hourly chart (left).
It follows the recent invalidation of the bearish trendline, characterizing the sell-off from record highs, as seen on the daily chart. BTC has also surpassed the 30-day exponential moving average (EMA) of price highs, indicating a bullish shift in momentum.
The focus, therefore, is on the $90,000-$92,000 range, the former support zone from early this year. Those tracking moving averages should note that the 200-day simple moving average (SMA) is now located at $88,245.
The bullish outlook risks invalidation should prices fall all the way back to $85K by the day’s end (UTC).
Markets tend to revisit breakout points before staging bigger rallies, meaning BTC could revisit $86K – more so, as the breakout happened during the early Asian hours when the liquidity tends to be weak, allowing few orders to have an outsized impact on the spot prices.
11:25 UTC: Adds comments about volume and pullback risks in the last para.
