Bitcoin Hovers at $87K Resistance Awaiting Breakout or Rejection

The Bitcoin price has climbed again, reaching the $87K horizontal resistance level, but a breakout has yet to materialize. The question remains: will this latest advance finally shatter the resistance, or will the bulls face another rejection? The situation is poised for a decisive move.

On the short-term chart, Bitcoin is positioned within an upper bull flag channel, suggesting potential for an upside breakout. Bulls argue that repeated tests of the upper trendline increase the likelihood of a successful breakout. However, bears point to the formation of lower highs since the initial breakout attempt, indicating possible weakening momentum.

Zooming out to the daily time frame, the overall uptrend remains intact. A breakout above the next resistance level could signal further gains, while a rejection might trigger a significant correction. Despite the uncertainty, the bulls retain the upper hand, as the rally has been methodical without extreme overbought conditions.

Some analysts suggest the bear market may not be over, with a return to lows possible until the downtrend is definitively broken above $97,880. However, others argue that the current rally could extend, potentially reaching $94K, contingent on favorable shifts in U.S. bond yields and stock market performance. The RSI indicator remains bullish, having broken a two-and-a-half-year downtrend.