Bitcoin (BTC) has shown impressive resilience in recent trading sessions, particularly as it successfully retested the $91,000 support level, signaling continued bullish momentum. According to recent chart analysis from @rektcapital, Bitcoin’s daily close above $91,000 has been crucial in preserving both the $91,000-$101,000 price range and the early-stage higher low on the Relative Strength Index (RSI), which has important implications for the cryptocurrency’s potential future price action.
In the latest technical update, Bitcoin managed to close above the $91,000 mark, maintaining its position within the crucial $91,000-$101,000 range. This range has acted as a solid foundation for Bitcoin’s price as it tests key levels in the market. For Bitcoin to continue its bullish trajectory, staying above the $91,000 mark is essential. This price level not only represents a significant psychological barrier but also aligns with technical indicators showing early-stage signs of strength, particularly in the form of higher lows on the RSI.
This consolidation within the $91,000-$101,000 range indicates that Bitcoin is attempting to stabilize and gather strength before making a potential breakout to higher levels. As long as the price remains above $91,000, the chances for bullish continuation remain intact.
RSI, Bullish Divergence, and Key Levels to Watch
A significant development that traders are closely watching is the subtle formation of a higher low on the RSI. The RSI is a momentum oscillator used to assess whether an asset is overbought or oversold, with values above 70 considered overbought and below 30 oversold. The higher low on the RSI suggests that while Bitcoin’s price has been consolidating, the relative strength of the market is improving. This is a positive sign that buyers may be regaining control.
The formation of a higher low on the RSI combined with Bitcoin’s double bottom at the $91,000 price level is creating a potential bullish divergence. This divergence occurs when the price of an asset forms lower lows, but the RSI forms higher lows, indicating that the selling pressure is easing and that buyers may be preparing to take charge. This setup typically signals that an upward price movement is likely in the near future.
As Bitcoin continues to trade near the $91,000 mark, traders will be watching closely for any signs of further consolidation or a breakout above the $101,000 resistance level. A daily close above $91,000 is crucial for preserving the current bullish outlook. If Bitcoin manages to break through the upper end of the $91,000-$101,000 range, the next target could be $102,500, marking the potential for even further upward momentum.
However, if Bitcoin falls back below the $91,000 support level, it could signal a shift in momentum and a potential retest of lower levels, such as the $87,325 mark, which has been previously identified as a critical support level in recent price action.
Bitcoin’s current price action suggests that the cryptocurrency is still in a relatively strong position, with the $91,000 level serving as a key support area. The development of a higher low on the RSI and the bullish divergence in play are promising signs for further upward movement. As the market continues to evolve, traders will be closely watching these critical levels to determine whether Bitcoin can maintain its bullish trend and break past the $101,000 resistance. For now, the $91,000-$101,000 range remains pivotal in determining Bitcoin’s next move.
