Bitcoin price approaches its key resistance at $85,000 on Monday, with a breakout indicating a bullish trend ahead.
Bitcoin could rally toward $90,000 if it breaks above its 200-day EMA
Bitcoin price broke and closed above its descending trendline (drawn by connecting multiple high levels since mid-January) on Friday and rallied 2.22% the next day. However, on Sunday, it faced rejection at the $85,000 level, which coincides with the 200-day Exponential Moving Average (EMA) and the daily resistance level. At the time of writing on Monday, it trades at around $84,000.
If BTC breaks and closes above $85,000, it could extend the rally to the key psychological level of $90,000. A successful close above this level could extend an additional rally to test its March 2 high of $95,000.
The Relative Strength Index (RSI) on the daily chart flattens around its neutral level of 50, indicating indecisiveness among traders. The RSI must move above its neutral level for the bullish momentum to be sustained.
If BTC fails to close above $85,000 and continues its downward trend, it could extend the decline to retest its next daily support level at $73,072.
