Bitcoin (BTC) continues to face challenges as it struggles to breach the $86.8k resistance level. Despite maintaining support above $82k over the past week, the cryptocurrency lacks a definitive bullish outlook on higher timeframes, raising questions about its next move.
Resistance and Key Levels to Watch
The BTC daily chart retains a bearish structure, with the On-Balance-Volume (OBV) trending downward since February, signaling persistent selling pressure. Although the Awesome Oscillator (AO) indicates waning bearish momentum, it has yet to turn bullish. Technical analysis suggests that breaking above the $86.8k resistance could spark a potential uptrend, while a dip below $83k might trigger further bearish momentum. Additionally, Bitcoin appears to have formed a new range after breaking below a 3-month-old range in early March. This range has the mid-level at $86.9k, alternating as both support and resistance over the past three weeks. The Fibonacci retracement levels from Bitcoin's August-December rally point to the $72k support as a possible target if bears regain control.
On-Chain Metrics and Heatmap Insights
While the bearish outlook dominates the technical landscape, on-chain metrics provide hope. Long-term holders are opting to HODL rather than sell, suggesting some optimism for recovery.A look at the 2-week liquidation heatmap reveals that the nearest significant liquidity cluster lies at $88k, while the $83k zone is weaker in comparison. Below $83k, the $80k level presents a sizeable cluster, although further from the current price.
What’s Next for Bitcoin?
If Bitcoin flips the $86.8k resistance into support, it may provide a safer entry point for bullish traders. However, the liquidation heatmap suggests caution, as $88k could attract price action before facing a bearish rejection. Traders are advised to monitor reactions at both the $86.8k and $83k levels closely. A rejection at either could present short-selling opportunities, while a breakout could signal renewed bullish momentum.
The post Bitcoin at $86.8k Resistance: What Traders Should Watch Next appeared first on CryptosNewss.com
