Tension builds for Bitcoin: Newsbit analyst pays attention to these levels

The Bitcoin (BTC) price has been trading in a clear range above $80,000 for more than three weeks now. This keeps the market waiting for a clear direction; can the price rise towards $90,000 or should we expect a decline? Technical analyst Erik Juffermans of Newsbit is investigating the current state of the currency.

The level around 86,500 dollars is a clear resistance, as Juffermans shows. The BTC rate was rejected here in the week of September 21 and again on October 2, 5 and 6. 

The support on the bottom is slightly less clear, but the level of 81,500 dollars currently seems to be the line in the sand for the bulls. This level also acted as resistance to the peak of 21 September.

Of course, the price will not continue to trade between these two zones forever. At some point, the price will have to make a choice; a breakout at the top and a rally towards $90,000, or a loss of $81,500 and a further drop below $80,000.

In the short term, we pay attention to the limit of 84,000 dollars. This is the midpoint of the current range and currently acts as the first resistance level. In the event of a breakthrough of this zone, the price could look up the top of the range again.

On the daily time frame, we see a clear upward channel. The price is still trading neatly here and in principle we do not see any direct signals suggesting that this channel cannot hold up. According to Juffermans, we can therefore take into account a bounce from the bottom of this channel.

In the event of a loss of this channel, the alarm bells will sound at the analyst. In that bearish scenario, $75,000 is a zone to watch. As long as that does not happen, we can remain bullish and take into account a continuation of the trend towards $90,000.