Bitcoin’s Bullish Breakout: Eyes on $90,000 as BTC Surges Past $87,000

Bitcoin’s Bullish Breakout: Eyes on $90,000 as BTC Surges Past $87,000

Bitcoin’s price has broken out of its recent range, shifting focus to the $90,000 level, previously a strong support zone. After consolidating between $83,000 and $86,000, BTC surged beyond $87,000, signaling renewed bullish momentum. This move suggests a potential major recovery for the cryptocurrency.

Factors Driving the Rally

The recent price action is supported by a decline in the U.S. dollar index (DXY), which has dropped to a three-year low, and a rally in gold. These factors have contributed to Bitcoin’s upward trajectory, with BTC reaching its highest level since April 2 at $87,799.

On-Chain Insights

According to on-chain analytics platform IntoTheBlock, the $90,000-$92,000 range, which previously acted as a support zone from December to early February, is now in focus. The cost-basis indicator clusters reveal limited overhead supply below $90,000, suggesting the market could advance quickly before a larger group of holders reaches break-even and begins taking profits.

Risks and Support Levels

While the bullish outlook is promising, it could be invalidated if Bitcoin falls back to $85,000, potentially trapping it in its previous trading range. The daily SMA 50 at $84,066 is a critical support level to watch for confirmation of continued upward momentum.

With Bitcoin now trading above $87,500, the next key target is a decisive break above the 200-day simple moving average (SMA) at $88,245 to reach the $90,000 mark. Investors are closely monitoring these levels as Bitcoin’s recovery gains traction.