Bitcoin Flexes its Muscle to Clear Key Resistance Zone, Eyes $100K as Momentum Builds

Bitcoin kicked off the week with a strong rally, pushing above $89,000 to hit its highest price since early March. Now trading near $92,991 Wednesday morning, this move marks a significant recovery of nearly 20% from its April lows, standing out especially as traditional stock markets continue to show declines. Analysts believe the surge is being fueled by growing institutional demand, fresh inflows into Bitcoin ETFs, and a weakening U.S. dollar.

Several major cryptocurrencies are following Bitcoin’s upward momentum. Ethereum (ETH) has climbed over 1% and is now trading above $1,640. XRP is also seeing gains, up 0.6% as it tests the $2.10 mark. Dogecoin (DOGE), the popular meme coin, has jumped 3.6% and is trading above 16 cents. Solana (SOL) has added 3%, while Sui has surged by 6%.

Key Levels Shift After Bitcoin’s Surge

With Bitcoin breaking higher, key technical levels come into focus. CryptoQuant analyst Crazzyblockk explained that Bitcoin’s short-term holder cost basis, calculated around $91,500, previously acted as strong resistance.

Now that the price trades above it, this $91.5k level becomes a critical area to watch as potential new support. Further down, the $83,700 zone remains solid underlying support, bolstered by buyers who entered during recent dips.

According to the analyst, a sustained hold above $91,500 would confirm the breakout’s strength and could open the door for further upside targets. Conversely, should Bitcoin slip back below the major $83,700 support level, it could trigger renewed selling pressure from short-term traders.

Technicals and Sentiment Remain Positive

Bitcoin’s recent powerful price movement clearly demonstrates underlying strength. Earlier brief dips, including one towards $86,400, were quickly absorbed by buyers, indicating strong interest at lower levels.

While some wave pattern analysts previously anticipated a short-term peak forming soon, the decisive push above $90,000 likely alters that immediate technical picture. Holding above former resistance zones like $86,400 now significantly reinforces the current bullish case.

However, they warn that a break below the $86,400 level could mark the start of a broader correction phase.

Source: MoreCryptoOnline

Overall market sentiment remains positive for Bitcoin, further supported by the strong technical bounce, consistent ETF inflows, and the weakening U.S. dollar backdrop.

Traders and investors are now watching very closely to see if Bitcoin can maintain its momentum above the critical $91,500-$93,000 area and make a sustained push towards the widely watched $100,000 psychological target in the coming days or weeks.