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).