Bitcoin Rebounds To $87K, Targets $90K Breakout Level Next

Cryptocurrency

Technical Analysis

Summary:

Bitcoin rose to $87,350 and now sits just below the key resistance zone at $88,500. Open interest fell sharply to $6.31B as market pressure built in early April 2025. Inflation touched 0.97%

● Bitcoin rose to $87,350 and now sits just below the key resistance zone at $88,500.

● Open interest fell sharply to $6.31B as market pressure built in early April 2025.

● Inflation touched 0.97% in March and slowed Bitcoin’s upward momentum significantly.

Bitcoin (BTC) showed significant recovery momentum after a week of consolidation, rising by over 3% as of April 21, 2025, to reach $87,350 at press time. This upward movement brings BTC closer to the key $88,500 resistance level, a critical area that could trigger further liquidity movement. If it breaches this resistance effectively, BTC may target the $90k level given the current price action and patterns noted on previous breakouts tried in analogous zones.

BTC Testing Key Resistance Levels

BTC has shown resilience, consolidating between $76,000 and $87,350 in recent weeks after failing to hold above $90,000 during earlier attempts. The chart analysis highlights $88,500 as a major resistance point, where BTC has previously struggled to maintain upward momentum. The 0.618 Fibonacci retracement level at $86,307 suggests that BTC is holding firm near this zone, signaling that the market could be preparing for another upward push if buying pressure continues and liquidity above $88,500 is taken.

Furthermore, the Relative Strength Index (RSI) at 52.02 relative to the 14-day close of 53.87 suggests a neutral market sentiment. This level suggests that BTC has potential for growth, as it is far from being overbought. The recovery of RSI from the low 40s confirms renewed buying interest after weeks of stagnation. In this case, should the buying side strengthen, BTC would push past resistance at $88,500 and move toward $90,000 before facing further obstacles near its $96,424 and $109,312 Fibonacci extensions.

If BTC fails to sustain above $88,500, it might retrace toward the $79,200 support level, aligning with the 0.5 Fibonacci zone. Additionally, if the sentiment declines, the $72,095 mark at the 0.382 retracement may act as the next downside buffer. The Fair Value Gap (FVG) formed earlier is still active below the current price and may act as a magnet should the momentum fade in the short term.

Source: CryptoSlate

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