Bitcoin Approaches Critical Technical Milestone as Price Targets $93,500 – What Lies Ahead?

As Bitcoin (BTC) breaks through essential resistance levels, analysts suggest that the cryptocurrency is gearing up for a potential rise in value and a revisit of a significant technical area in the upcoming weeks.

Key Takeaways

Bitcoin is testing the $93,500 resistance point as it approaches a critical technical milestone.
The cryptocurrency has shown structural changes in its price actions despite recent volatility.
The converging 50-week and 21-week EMAs indicate potential upward momentum.
Maintaining support above $93,500 is crucial for Bitcoin to initiate further price appreciation towards $100,000.

Bitcoin

Bitcoin Nearing a Crucial Decision Point

On Tuesday, Bitcoin experienced a 2.5% increase, revisiting the $93,500 resistance for the first time in a week. The price has been oscillating between the $84,000 and $93,500 range for the past three months, struggling to establish this level as support on several occasions.

Market analyst Rekt Capital highlighted that Bitcoin is approaching a “historic” test, as it starts to form “another technically significant area” just above its current prices. Rekt explained that BTC is nearing the dynamic Bull Market Exponential Moving Average (EMA) cluster, where the 50-week EMA and the 21-week EMA are converging.

Bitcoin

Bitcoin’s 21-week and 50-week EMAs are approaching a crossover. Source: Rekt Capital

This critical cluster, presently situated between the $96,000 and $97,500 levels, has historically been examined prior to a “meaningful crossover.” Typically, Bitcoin's price tends to extend beyond this cluster, but such movements are often followed by a failure to confirm this area as support. Rekt pointed out that when this occurs, the crossover usually follows a bearish price event instead of triggering it, flipping the EMA cluster into resistance and leading to further downward movement.

Historical patterns indicate that the 50-week and 21-week EMAs can end up very close to one another, with overlaps lasting for extended periods before a decisive crossover occurs. At present, Bitcoin has not yet tested and pushed further beyond these two EMAs, but past performances signify that such an event is likely. Furthermore, BTC’s price is positioning itself in a way that may create a launchpad for higher values, potentially targeting this EMA cluster in the weeks to come. The pressing question remains: when will this occur?

BTC Price Surges Past Key Resistances

In his analysis, Rekt examined BTC’s recent trends, noting a structural shift despite the sideways price movement. Last week, the cryptocurrency closed above a multi-week downtrend that had acted as a significant resistance since late November.

This marks “a small but meaningful technical achievement,” as Bitcoin now rests above the highs from November and December on a weekly basis, treating prior resistance as newfound support. Additionally, the mid-range of its local price zone, around the $90,500 level, is now “almost perfectly aligned with the previous downtrend,” indicating that the downtrend that previously rejected the price is starting to serve as layered support.

If Bitcoin maintains its position in this mid-range area, it could challenge higher price levels and pave the way toward $100,000. Rekt added that, unlike earlier retests, the latest rejection from the crucial $93,500 resistance was notably less severe and longer, implying a weakening of resistance.

Currently, the leading cryptocurrency has successfully retested the downtrend breakout area as support and has momentarily reclaimed the $93,500 resistance, climbing above $94,000 once again. Ultimately, BTC needs to remain in this range and close the week above $93,500 to “initiate a breakout from the Weekly Range as indicated by previous green circles,” Rekt concluded.

As of now, BTC is trading at $94,334, registering a 2.6% increase over the weekly timeframe.

Bitcoin Chart

BTC’s performance on the one-week chart. Source: BTCUSDT on TradingView