Monday rises non-stop: Bitcoin breaks through $87,000

Background analysis

Bitcoin experienced significant price volatility on April 21, with prices briefly surpassing $87,000 and reaching a high of $87,250. This surge followed a relatively stable consolidation range, indicating that the buying power in the market has recovered and there may be further upward potential.

K-line patterns and market trends:

1. K-line Patterns and Breakouts

The price of Bitcoin experienced a strong increase on April 21, breaking through the key resistance level of $84,500 and quickly reaching $87,250. This surge was accompanied by the formation of a large bullish candlestick, indicating extremely optimistic market sentiment. Especially after the price breakout, trading volume saw a significant increase, showing a buyer-dominated market situation.

From the candlestick pattern perspective, the price has broken through the upper boundary of the previous consolidation range (83,000 USD to 84,500 USD) and formed a clear “V-shaped reversal” pattern. Typically, this pattern suggests that the market may continue to maintain an upward trend, especially when there has not yet been strong selling pressure in the short term.

2. Volume Analysis

Through the Volume Profile, we can see that the range between $84,500 and $85,000 is the current key support area, and the trading volume within this range is very dense. The current price breaking through this price range means that the market has effectively absorbed the selling pressure in this price range. If a pullback occurs in the future, it is expected to be supported by this support area.

Technical Indicator Analysis:

MACD Indicator: The MACD (12, 26, 9) shows a clear bullish trend. The DIF line is firmly above the DEA line, and the histogram shows an upward trend, indicating that the market’s upward momentum is strengthening. Currently, there are no clear sell signals on the MACD chart, suggesting that Bitcoin’s short-term upward momentum remains strong.

RSI (Relative Strength Index): The current RSI value for Bitcoin is 88.69, close to the overbought zone of 90. Although the RSI value is at a high position, suggesting that the market may have a short-term overheating risk, since the RSI has not entered the extreme overbought area and still has some room for upward movement, this indicator has not issued a strong sell signal. In the short term, if the RSI breaks above 90, caution should be taken regarding the risk of price pullback.

KDJ Indicator: The KDJ indicator’s K line and D line show a strong upward momentum. In particular, the value of the K line (84.07) is above the D line (70.25), while the J line (94.31) is at a high level, indicating that the market may continue to maintain strong upward momentum in the short term. This trend of the KDJ indicator is a strong bullish signal, suggesting that investors should maintain a bullish strategy in the short term.

OBV (On-Balance Volume): The OBV indicator shows extremely positive capital inflow, with the current OBV value at 233,520.07, which is far higher than the levels of the past few weeks. The capital inflow that coincides with the price increase indicates strong financial support behind this rally. A high OBV value typically means strong market buying pressure, and the price increase trend is sustainable.

Large fund transfers and market sentiment:

1. Large capital inflow

From on-chain data, there has been a significant inflow of large funds into Bitcoin, especially when it broke through the $84,500 range, with multiple large exchanges receiving substantial deposits. The inflow of large funds usually indicates an optimistic outlook on Bitcoin’s future performance, and this capital may also serve as a catalyst for further price increases.

2. Market Sentiment:

According to market sentiment analysis, Bitcoin’s market sentiment is currently in a state of extreme optimism. The Fear and Greed Index shows that the market is in the extreme greed zone. Nonetheless, this also indicates a higher risk of volatility in the market.

Today’s trend prediction and short-term outlook:

1. Support and Resistance:

Support level: The current support level for Bitcoin is mainly around $84,500, where the trading volume is dense. If the price retraces to this range, there is a high possibility of receiving support.

Resistance level: The upper resistance level is between $87,500 and $88,000. If the price continues to rise and breaks through this range, it may further challenge $90,000.

2. Today’s Trend Prediction:

According to the current technical analysis, Bitcoin is likely to oscillate within the range of $84,500 to $87,500. In the short term, the market remains in a strong upward trend, but as the RSI approaches the overbought zone, there may be a risk of a short-term pullback. If the price breaks below the support level of $84,500, it may test the support area of $82,000. If the price breaks above $87,500, it may initiate a new upward wave, targeting $90,000.

This article represents the author’s personal views and does not reflect the position or views of this platform. This article is for informational sharing only and does not constitute any investment advice to anyone.

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