- Bitcoin’s bullish surge faces resistance at $86K amid declining trading volume.
- RSI at 28.72 signals oversold BTC, hinting at a potential price rebound.
- Derivatives volume drops 35.03%, but open interest rise shows market stability.
Bitcoin continues to show strong bullish momentum as it trades at $85,329.12, marking a 6.24% increase in the last 24 hours. The price recently surged past $80,000, reaching a peak close to $86,000 before stabilizing.
This rally reflects growing market confidence, but the decline in trading volume suggests a possible slowdown. While BTC remains in an uptrend, traders should monitor key technical levels to assess potential price movements in the coming days.
Key Support and Resistance Levels Indicating Market Strength
Bitcoin’s recent breakout above $80,000 established strong support zones, reinforcing investor confidence. The $80,000 level serves as critical support, with potential buy orders accumulating in case of a retracement.
Additionally, the $82,000 to $83,000 range saw consolidation before the latest surge, making it an important intermediate support zone. Short-term support is forming near $85,000, as BTC fluctuates around this price level.
On the upside, BTC faces resistance at $86,000, the recent peak. A breakout beyond this could push the price towards $88,000 to $90,000, where sellers may become active. If bullish sentiment continues, BTC could target the psychological resistance at $100,000. However, the declining trading volume suggests the market might consolidate before another significant move.
Technical Indicators Highlight Market Conditions
The Relative Strength Index (RSI) currently stands at 28.72, indicating oversold conditions. This suggests a potential bounce if buying pressure increases. A move past 37.95 on the RSI could confirm renewed bullish momentum.
Meanwhile, the Moving Average Convergence Divergence (MACD) line remains below the signal line, confirming short-term bearish momentum. However, the weakening negative histogram suggests selling pressure may be decreasing.
Derivatives Market Activity Suggests Mixed Sentiment
As per Coinglass data, Bitcoin’s derivatives market shows a sharp 35.03% decline in trading volume, now at $104.20 billion. This signals reduced market participation.
However, open interest increased by 2.74% to $51.01 billion, indicating that traders are maintaining their positions despite lower activity. Additionally, options trading volume dropped 20.04% to $4.17 billion, while options open interest saw a minor 0.95% decline to $27.59 billion.
