"If it breaks through $81,200, it goes further"...Bitcoin, once again on the verge of a surge

▲ Bitcoin (BTC), rise/ChatGPT generated image

Bitcoin (BTC) has secured support around $78,500 and is showing an upward trend again, opening up the possibility of further gains.

NewsBTC reported on May 5 (local time) that Bitcoin successfully rebounded after holding the $78,500 level, and after surpassing the $80,500 range, it paused near its peak. Bitcoin recovered short-term buying momentum by breaking through the resistance levels of $78,800 and $79,200 in succession.

During its ascent, Bitcoin formed a high of $80,770 and then entered a correction phase. However, it maintained a bullish structure by moving above the Fibonacci 23.6% retracement line of the rally from the low of $74,940 to the high of $80,770. On the hourly chart, trendline support was formed around $79,200.

From a technical perspective, holding the $79,200 and $78,800 levels is key to sustained short-term gains. If the price remains stable above this range, Bitcoin could retest the $80,500 resistance. The primary key resistance is $80,800, and if it breaks through $81,200 on a closing basis, further upward potential opens up to $81,650.

If the uptrend continues further, the next target ranges are presented as $82,000 and $82,500. The hourly Moving Average Convergence Divergence (MACD) is accelerating in the bullish zone, and the Relative Strength Index (RSI) is also above the 50 line, indicating a buying advantage.

Conversely, if Bitcoin fails to break the $81,200 resistance, it could face renewed downward pressure. Immediate support is at $79,200, and major support is located at $78,500. Subsequently, if there is a further decline, the $77,850 range and the Fibonacci 50% retracement line could act as the next defensive lines.

NewsBTC analyzed that Bitcoin's key support is at $76,500, and a breach of this level could make short-term recovery difficult. The market is currently expected to determine its next direction based on whether it breaks $81,200 and whether it maintains support at $79,200.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*