The bullish trend of Bitcoin persisted over the weekend, rising to a record high of almost $85,000 briefly on Sunday. The price, as recorded by CoinMarketCap, reached as high as $85,700 on April 13 before easing slightly as some investors took profits. Despite the recent surge, market experts are keeping a watch on the $88,000 mark. 

Analysts believe that this pricing point acts as both a psychological and technological barrier. If Bitcoin manages to break above it, it might signify the start of a more positive trend. Failure to break over this barrier, on the other hand, may indicate that the cryptocurrency stays trapped within its current trading range.

Why the $88K Level Matters

The $88,000 level has become a turning point decision for Bitcoin’s ongoing rally.  As per reports, continuous price action above the level can affirm a breakout pattern, leading to more institutional buying and retail drive. Failing to breach the resistance, however, can suggest a waning interest of investors and lead to a price decline. 

A number of technical indicators show that Bitcoin’s bullish trend is gaining momentum and strength. Analysts point out that the daily Relative Strength Index (RSI) is still above 60, which normally indicates further upward movement in the market. Moreover, Bitcoin has remained above its 20-day exponential moving average, an important indicator of further upward pressure.

Bitcoin is, at the time of writing, trading at $84,650.60. It reached this level after recovering from a recent low of around $75,000. According to Coinbase market stats, Bitcoin has increased by 0.21% in the last hour, showing a small gain. In the past 24 hours, it has gained 1.59%, and in the last week, it’s up by 2.29%. Bitcoin is now near the top of a pattern called a falling wedge, which many technical analysts believe could signal future price increases. This pattern might indicate that Bitcoin could see more upward movement in the short term.

Momentum Builds Amid Technical Strength

The current market situation is critical for Bitcoin investors. Historically, when Bitcoin follows the VIX trendline, it frequently indicates major price movements. As volatility escalates, new Bitcoin purchasing chances may emerge. Data demonstrates that high VIX levels are typically associated with good conditions for Bitcoin’s price to rise. Analysts feel the potential for upward movement is greater currently than during low-volatility periods, implying that the market is poised for a recovery.

CryptoQuant’s April 11 post on X says that if Bitcoin keeps rising, it might hit resistance between $84,000 and $96,000. These levels are based on the Realized Price. The Realized Price shows the average price Bitcoin last traded at on the blockchain. Julio Moreno, Head of Research at CryptoQuant, explained that Bitcoin’s Realized Price is currently $96,000, with a lower level at $84,000. If Bitcoin stays above $84,000, it shows strong momentum. But if it drops below this price, it means many investors are losing money.

Conclusion

Although market sentiment is typically bullish, traders are cautioned to exercise caution. Analysts warn that if Bitcoin breaks above $88,000, it will require significant trading volume to avoid a fake breakout. In addition, incoming inflation statistics and Federal Reserve policies may continue to have an impact on investor confidence.

For the time being, the resistance at $88,000 is the main focus. If Bitcoin can break through, it may be poised for its next major upward surge.