Watch These Bitcoin Price Levels as Post-Election Rally Propels It Toward $90K
Bitcoin (BTCUSD) remains in the spotlight on Tuesday as the pioneer cryptocurrency nears the $90,000 level for the first time.
The cryptocurrency has gained about 25% over the past week, hitting a series of record highs, amid optimism that the incoming Trump administration and Republican lawmakers could provide regulatory clarity for digital assets and establish a strategic Bitcoin reserve.
A key demand driver continues to come from spot Bitcoin exchange-traded funds (ETFs), which recorded net inflows of $1.2 billion on Monday, their second largest daily haul since launching in early January.
Bitcoin was around $87,800 in early-afternoon trading Tuesday, after rising to just under $90,000 in overnight trading. The cryptocurrency surpassed $80,000 for the first time on Sunday.
Below, we break down the technicals on Bitcoin’s chart and identify important price levels to watch out for.
Since breaking out from an eight-moth trading range last week following the election outcome, Bitcoin’s price has continued to trend sharply higher on above-average volume into price discovery mode.
In another win for the bulls, the 50-day moving average (MA) crossed above the 200-day MA late last month to form a golden cross, a bullish chart pattern that signals a new uptrend.
Moreover, the relative strength index (RSI) confirms strong price momentum with a value above 80, though the elevated reading also indicates extremely overbought conditions that could lead to short-term profit taking.
Let’s use technical analysis to predict how Bitcoin’s recent move higher may play out and also identify a crucial zone of support that could gain attention during retracements.
To forecast a potential upside price target, we can use a bars
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