After months of struggle, bitcoin (BTC) bulls have finally managed to chew through the breakout level of $70,000 this week, setting new record highs above $76,000.With BTC in a price discovery mode on pro-crypto Donald Trump's return to the White House, the most pressing question for traders is: What's the next resistance level that could challenge the bulls?
One of the straightforward ways to identify such a level is to examine the price chart. For instance, by drawing a trendline off the April 2021 peak of $64,898 and the November 2021 high of around $69,000 and extending it forward, we can see that the resistance lies around $90,000Trendlines are a staple in technical analysis, helping traders identify the broader trend and potential support and resistance levels. In bitcoin's case, the upward-sloping trendline drawn from previous peaks can act as a target for potential sell orders or profit-taking, becoming a speculative resistance. Convergence of traders' actions could slow the ascent if and when the price nears $90,000.The latest move above $70,000, representing the unspooling of the prolonged consolidative pattern, indicates that the broader uptrend from the October 2023 lows has resumed.The breakout and a renewed positive flip in the MACD histogram, implying a strengthening of bullish momentum, suggest that the resistance at $90,000 could be tested soon.
A move below the weekly low of $66,824 would invalidate the bullish technical outlook.
Note that the activity in the options market suggests potential resistance at $80,000 and $100,000..
