Bitcoin Price Dips After Rally—Is This the Perfect Entry Point?

Bitcoin price started a steady increase above the $85,500 zone. BTC is now correcting gains from $88,750 and might find bids near $86,500.

Bitcoin started a decent recovery wave above the $85,000 zone.
The price is trading above $86,500 and the 100 hourly Simple moving average.
There is a connecting bullish trend line forming with support at $86,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $87,500 and $88,000 levels.

Bitcoin Price Regains Traction

Bitcoin price remained stable above the $83,200 level. BTC formed a base and recently started a recovery wave above the $85,500 resistance level.

The bulls pushed the price above the $88,000 resistance level. However, the bears were active near the $88,800 resistance zone. A high was formed at $88,750 and the price corrected some gains. There was a move below the $88,000 level.

The price dipped below the 23.6% Fib retracement level of the upward move from the $83,665 swing low to the $88,750 high. Bitcoin price is now trading above $86,200 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $86,800 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $87,200 level. The first key resistance is near the $87,500 level. The next key resistance could be $88,000.

A close above the $88,000 resistance might send the price further higher. In the stated case, the price could rise and test the $88,800 resistance level. Any more gains might send the price toward the $89,500 level or even $90,000.

More Losses In BTC?

If Bitcoin fails to rise above the $87,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $86,800 level and the trend line. The first major support is near the $86,200 level or the 50% Fib retracement level of the upward move from the $83,665 swing low to the $88,750 high.

The next support is now near the $85,500 zone. Any more losses might send the price toward the $85,000 support in the near term. The main support sits at $84,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $86,800, followed by $86,200.

Major Resistance Levels – $87,500 and $88,000.

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