Bitcoin Tests $94K Resistance as Bulls Eye $95K Breakout

Bitcoin price has initiated a fresh upward movement, decisively breaking above the $92,000 zone and currently challenging the significant $94,000 barrier. According to data from the Kraken exchange for the BTC/USD pair, the cryptocurrency managed to stay above the $88,000 support level before gaining strength to move past $88,800 and $92,500 resistance. A high was formed at $94,050, placing the market at a critical juncture. The price action remains above the 23.6% Fibonacci retracement level of the recent upward move from the $83,870 swing low to the $94,050 high, indicating that the underlying bullish structure is still intact.

Currently trading above $92,500 and the 100-hour Simple Moving Average, Bitcoin exhibits clear technical strength. A notable development on the hourly chart is the formation of a bullish trend line providing support at $92,000. This trend line, coupled with the price holding above key moving averages, suggests sustained buying pressure. The immediate focus for market participants is whether Bitcoin can achieve a sustained close above the $94,000 resistance zone, which would open the path toward higher targets.

Technical analysis of the BTC/USD pair reveals strengthening bullish momentum. The hourly Moving Average Convergence Divergence (MACD) indicator is gaining pace in bullish territory, while the Relative Strength Index (RSI) is positioned above the 50 level. These readings suggest that buying pressure is dominant and could support further price appreciation. The combination of these indicators with the price holding above the $92,000 trend line support creates a favorable technical backdrop for the bulls.

Should Bitcoin successfully settle above the $94,000 zone, the first key resistance is identified near $94,200. A decisive break and close above this level could propel the price toward the psychologically significant $95,000 mark. In this bullish scenario, the next major resistance levels are projected at $95,850 and $96,500. Any continuation of gains might even see Bitcoin test barriers at $97,200 and $98,000, setting new milestones for the cryptocurrency’s rally.

While the outlook is positive, the market report outlines clear downside risks should Bitcoin fail to overcome the $94,000 resistance. The immediate and most critical support is situated at the $92,000 level, coinciding with the bullish trend line. A breach below this support could trigger a deeper correction. The first major support below that is near $91,200, followed by a more substantial zone around $88,850.

The $88,850 level is particularly significant as it represents the 50% Fibonacci retracement level of the upward move from the $83,870 low to the $94,050 high. A decline to this area would indicate a more pronounced pullback. Further losses could see Bitcoin test the $87,500 support, with the main support sitting at $86,500. A break below $86,500 could accelerate selling pressure in the near term, invalidating the current bullish structure and forcing a reassessment of the short-term trend.