Bitcoin Faces Resistance at $83K as Price Battles to Breakout

• Bitcoin’s price faces strong resistance around the $83K range.
• A push above $84K could open the way for a rally toward $90K.
• If it fails, a dip to $79.5K could be the next key support.

Critical price levels for Bitcoin are undergoing a challenge test at $83,000, marked by strong resistance on the 12-hour charts. In a tweet from Crypto analyst Cantonese Cat (@CantoneseCat), it was noted that Bitcoin is having a tough time breaking through this zone. On the charts, Bitcoin is trading at $83,141 after marking today’s intraday high at $83,387 for a gain of 0.68%. So far, price has had multiple closures below this resistance, suggesting the buyers may be tiring.

Bolinger bands showed volatility narrowing, marking the upper band at $87,052 and the lower band at $79,519. This constrained range is a steady indication that Bitcoin is moving inside a confined price zone, thus breaking out in either direction may be on the way. Closing above $84,000 would present a strong upside proposition toward $90,000, while a rejection may result in a price drop back to near $80,000.

Technical Indicators Indicative of Potential Reversal

The moving averages provide an indication of resistance to Bitcoin at the price level of $83,285, with the 20-period SMA making itself influential. Cases through history suggest that this level has acted as a short-term pivot, and not able to reclaim it as support will present fresh selling pressure. The charts show multiple failed breakouts from this level over the past few days, indicating the strength of this resistance.

Watching on will be traders for the next major support level at $80,900 should Bitcoin resolve downwards away from $83,000. Any drop beneath that could pull Bitcoin back into the lower Bollinger Band’s operational range, where support at $79,500 will be retested. This corresponds with prior price action by way of BTC/USD presenting sharp retracements after failing to uphold breakouts above significant moving averages. 

What Next for Bitcoin?

Uncertain for the short term, traders will be keeping a close eye on whether Bitcoin takes out $83,000 or succumbs to selling pressure. Should buyers maintain their ground and take back $84,000, Bitcoin could be primed for a run toward $87,000 or better, joining forces with the increasing market momentum in its favor. Conversely, if rejection occurs already at these levels, Bitcoin will see another sell-off that will push it toward the $80,000 region, staving off any bullish breakout. 

The next few days are crucial for determining Bitcoin’s direction as traders are looking out for confirmation of breakout or breakdown. The tightening of the Bollinger Band indicates imminent volatility, making it a crucial moment for Bitcoin price action.