The Bitcoin price moved sideways this week, with minimal fluctuations and small candles on the chart. Analysts are watching key supports and indicators that could lead to a return of the price above $90,000.
Bitcoin rebounded after falling to $85,166
Although the price of Bitcoin has remained virtually unchanged since Monday’s opening, the market has not been boring at all. Monday’s CME gap gradually began to fill, and short-term movements provided traders with opportunities to profit. However, after Strategy announced the purchase of more than 10,000 BTC, a “sell the news” effect followed, and the price fell to $85,166. Oversold RSI levels appeared on the hourly chart, signaling the possibility of long positions.
A bullish divergence gradually formed, leading to a gradual rise in price. The release of US inflation data and an interest rate hike in Japan caused short-term volatility, but the market quickly returned to growth. The CME gap was eventually filled by an impulse candle, confirming the emergence of bullish sentiment and opening the way for Bitcoin to return to higher levels.
Technical analysis suggests Bitcoin will rise above $90,000
The charts show key support and resistance levels – the trend line around $89,300 and the daily Kijun-sen at $91,380 could be key levels. The Ichimoku and stochastic RSI indicators signal that market sentiment is beginning to turn bullish, supporting the idea of a short-term rise towards $90,000.
Historical logic from past cycles shows a similar pattern, which could bring a gradual test of the 50-week moving average and a return above $90,000 before the end of the year. The expiration of option contracts and expected lower liquidity over the holidays could create an ideal environment for a Santa Claus rally, which could support this growth.
