Bitcoin Faces Crucial Resistance Zone After 13% Weekly Rally
Bitcoin's recent surge has brought it to a crucial resistance zone around $86K-$89K, testing its strength after a 13% weekly rally. The asset's momentum remains constructive, but the reaction in this region will determine whether the move develops into another bullish leg or pauses for a deeper retest.
On the daily chart, Bitcoin has broken out of its previous corrective structure and is now trading around $86K. The asset is comfortably above both moving averages, indicating a strong bullish structure. However, the current resistance zone is substantial, and the latest candles show some hesitation after reaching it.
A notable momentum divergence is developing on the daily chart, as the price has pushed to a higher high while the Relative Strength Index (RSI) remains below its previous peak. This bearish divergence does not necessarily signal an immediate reversal but suggests that upside momentum is not expanding at the same rate as price.
The 4-hour chart emphasizes Bitcoin's aggressive move, with a large impulsive candle breaking above $80K and quickly reaching the $86K region. The price is now consolidating just inside the supply zone rather than immediately reversing, indicating that buyers are still attempting to absorb selling pressure.