Bitcoin breaks through major resistance lines one after another…“Signal of a big cycle bottom,” will $90,000 open up?

▲ Bitcoin Bull Market ©

Bitcoin (BTC) surged to its highest level since January, breaking through major resistance lines from $80,000 up to its May high. With the breakthrough of long-term moving averages and multiple bullish crossover signals, $90,000 has emerged as the next key target, but the possibility of a correction due to short-term overbought conditions remains a cautionary factor.

According to investment media FXStreet on September 21 (local time), Bitcoin rose more than 4% in early Asian and European trading on Monday, continuing last Friday's 6% surge. After a brief pause over the weekend, BTC closed above $80,000 on Friday, then strengthened its upward momentum by breaking through the 61.8% Fibonacci retracement level of $82,331 and the May 6 high of $82,821.

Significant changes also appeared in the long-term trend. BTC surpassed both the 55-week moving average (WMA) of $81,550 and the May high of $82,821. Windsor Brokers evaluated this as a signal indicating a bottom of a larger cycle and a strong reversal signal for the downtrend that extended from $126,299 to $57,673. However, they analyzed that for this to be confirmed, BTC needs to form a closing price above $82,821.

If the upward trend continues, the next key resistance levels are $89,467, where the 100-week moving average is located, and the psychological resistance level of $90,000. Prior to this, $85,500 and $86,320 were also presented as short-term resistance zones. Bullish crossovers seen in multiple daily moving averages (DMAs) and strengthening upward momentum support the possibility of further gains.

However, the fact that daily technical indicators have entered an overbought state is a burden. Windsor Brokers diagnosed that the rally might face short-term resistance due to overheating signals. Even if a correction occurs, it was suggested that the ideal scenario would be for $82,821, which has turned from a resistance line to a support line, to prevent a decline.

Short-term support levels are formed in order, starting with $83,888, followed by $82,821, $81,550, and $80,000. On the other hand, if BTC breaks above $85,500 and $86,320 to $89,467, the psychological resistance level of $90,000 is expected to become a serious test.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*