The price of Bitcoin tested the $88,000 level twice in the past hours, but faced clear rejection in each attempt, causing the price to quickly decline afterwards.
At the time of writing this article, the price of Bitcoin is around $87,000, continuing its recovery from last week's drop that pushed the currency below $82,000, amid increasing optimism about the likelihood of a federal interest rate cut and what that could bring in terms of liquidity flow and market support.
Analysts see that the market is still far from entering a bearish phase, and current conditions may allow for a new wave of increases.
Analyst 'Dan Crypto Trades' indicated that Bitcoin has already lost the support range associated with the bull market, explaining that the recent drop created a wide price gap of about $20,000 to return to that range.
He confirmed that the currency may return to this level later, considering it a pivotal area to watch, especially since the weekly market structure remains stable as long as the April low is maintained.
The price of Bitcoin had dropped to $75,000 in April, but the recent correction was more severe in terms of selling pressure.
For his part, analyst 'Rekt Capital' expects that a weekly close above $86,000 could pave the way towards $93,000 due to weak support and resistance levels in that area, especially since the close was actually at $86,820 according to 'TradingView' data.
Analysts from 'Stock Money Lizards' noted a break in a rising wedge pattern, along with the relative strength index entering an oversold area, similar to what happened in March and April, when momentary panic caused the market to decline before the currency reached new historical peaks later.
In contrast, analyst 'Colin' did not express the same optimism, explaining that he does not intend to return quickly to an overall bullish outlook despite the current rebound, which he described as comfortable and inevitable after indicators reached an oversold condition.
He emphasized that recovering price levels significantly higher than the current situation is necessary before talking again about reaching historical peaks, considering the recent rise merely a normal corrective movement.
The price of Bitcoin continues to trade near $87,000 as the wave of recovery that began over the weekend extends.
