Bitcoin (BTC) successfully breaks above the crucial $88,000 level. After a period of consolidation and downward pressure since December 2024, Bitcoin has shown signs of bullish recovery. BTC is currently trading above $88,375 with a 1.06% increase in the last 24 hours. Volume has significantly increased by 46.75% to $38.86 billion.
Bitcoin's price action reveals a compelling narrative of recovery after a substantial correction. Since reaching the peak of $106,000 in December 2024, BTC underwent a correction of nearly 20% and found support somewhere near the $79,918 level (0.5 Fib level). The latest price action indicates that the price has broken out of the downtrending channel.
The price was contained within this channel, currently with an upper trendline acting as resistance and a lower one as support. Recent price action has tested the lower boundary of the channel at approximately $73,732, near the 61.8% Fibonacci level, which is a potential strong support area.
The latest candle produced a strong bullish engulfing pattern. This bullish engulfing pattern indicates a possible increase in buying pressure as Bitcoin attempts to establish a new support level above $88,000.
Over the past few days, Bitcoin has crossed various important EMAs, including the 50-day EMA, showing that there is short-term stronger momentum. The BTC price above the 100-day EMA signals a stronger bullish outlook.
The MACD indicator shows a positive crossover in the average lines. This marks a strong upward momentum and projects an increased possibility of a sustained rally. The histogram displays positive green bars, indicating that the MACD line is above the signal lines, and momentum is growing.
The RSI at 60.28 indicates a rising bullish trend, without crossing into overbought territory. Therefore, there is still an upside buying space to capitalise on before any major corrections could disrupt the price.
The immediate price target is $93,759, located at the 0.236 Fibonacci level. Should bullish momentum persist, BTC may approach the $100,000 psychological level.
Key support levels include the recently broken upper boundary of the descending channel, around $85,000, and then the 0.5 Fibonacci level at $79,918. The psychological support of $85,000 is reinforced with the 50-day EMA, providing a crucial safety net in the event of pullbacks.
An analyst from Cryptoquant reports Realized Cap of Bitcoin reaching a new all-time high of $872 billion. This signals increased belief from long-term holders and continued capital inflows.
This suggests that we may not have yet reached the peak of the market cycle.
BlackRock has added another $84 million in BTC to its spot ETF holdings, strengthening its growing commitment to digital assets. As institutional interest continues to rise, this move underscores the growing integration of cryptocurrency into traditional finance.
MicroStrategy has strengthened its stance on Bitcoin with a $555.8 million purchase, acquiring 6,556 BTC at an average price of $ 85,000. This brings the company’s total BTC holdings to 538,200, reaffirming its position as the largest corporate holder of Bitcoin. Funded via MSTR stock offerings ($547.7 million from Class A, $7.8 million from preferred shares).
The total BTC investment to date is $36.47 billion. MSTR shares are up 2.77% pre-market, BTC trading at $87,300. For every acquisition the company makes, it becomes increasingly correlated with the price trajectory of Bitcoin, turning MSTR into a de facto proxy for the BTC price for mainstream investors.
As institutional adoption grows, MicroStrategy’s aggressive strategy continues to serve as a bellwether for broader market sentiment.