Bitcoin Price Analysis: BTC Could Rise to $95K if It Breaks This Trend Line Resistance

Bitcoin (BTC) is taking a breather in the past 24 hours as market participants took some profits off the table after the end of the American session yesterday following a strong rally that pushed BTC near the $90K for the first time in two weeks.

Trading volumes have gone up by 50% in the past day as market sentiment seems to be improving lately.

The Fear and Greed Index has jumped from a record-low of 17 to 34 at the time of writing. Although this still means that investors are still a bit pessimistic, this might be an early sign that the market has bottomed.

Last week, the Chairman of the Federal Reserve, Jerome Powell, reassured that the central bank is still planning to cut rates two times this year despite Donald Trump’s hostilities on the trade front.

This may have appeased investors’ concerns and could be the primary reason why the market value of most cryptos has improved in the past week.

BTC open interest has also exploded since the beginning of March, moving from a yearly low of 541.52 to 644.55. OI trends can be analyzed more accurately in BTC terms to eliminate the impact of price swings.

This 19% increase in contract volumes indicates that speculators are once again entering the scene as negative momentum appears to be subsiding.

BTC’s Positive Momentum Picks Up as Chairman Powell Appeased the Market’s Concerns

The daily chart shows that BTC is retesting a critical trend line resistance today during the Asian session. Market participants have been reluctant to push the price above this threshold and that increases the risk of a pullback.

However, positive momentum readings are favoring a breakout during the American session as bulls will likely aim to retest the $90,000 level to see if buying interest picks up once BTC reaches this key psychological threshold.

The Relative Strength Index (RSI) remains above the signal line, which is bullish, while the MACD’s histogram has posted its highest positive reading in two months.

A bullish breakout above $90K would push BTC to its nearest horizontal resistance at around $95,000.

A Bullish Breakout Was Rejected Yesterday

Moving to the hourly chart, we can see that a move above this trend line resistance was already rejected after the American session ended yesterday. Today’s price action around this area would be critical to determine if the rally will resume or accelerate or if bears will once again take over the price action.

BTC has been on an uptrend since March 10 as reflected by the green trend line, which shows that the price has made multiple higher lows along the way since it bounced off the $76K level.

Momentum indicators are improving ahead of the American session. The Relative Strength Index (RSI) just sent a buy signal while the MACD’s histogram shows that negative momentum is already fading.

Traders could take advantage of a pullback at this point to scoop up BTC at around $86,400. This level coincides with the token’s 0.500 Fibonacci retracement, meaning that the odds are high that Bitcoin will make a higher high during the session if this support area keeps holding.

A long position with an entry at that price would offer an attractive risk-reward ratio of 2.7 if the stop price is set below this area and the exit target at the higher high that Bitcoin made during yesterday’s session.