Bitcoin begins the new trading week on a strong note, with a notable upswing that could carry important technical implications. After a relatively muted performance last week, the cryptocurrency is regaining momentum, and early price action suggests that bulls are taking back control — at least for now.
From a technical perspective, two key developments are worth noting. First, Bitcoin has broken above a descending trendline (marked in black), signaling a potential end to the recent downtrend. This breakout is a classic early indication that the bearish pressure is easing and that buyers may be regaining the upper hand.
Secondly, the price has escaped from a narrow sideways range — defined by the blue rectangle — which had contained price action for most of the previous week. Breaking out of this consolidation zone typically suggests that a new directional move is underway, and in this case, it's clearly to the upside.
The next key test for Bitcoin lies ahead: a major horizontal resistance marked by the yellow zone around $88,700. This level has proven to be a formidable barrier in the past and will likely be a battleground between bulls and bears once again.
A daily close above this yellow resistance would confirm a strong buy signal and open the path to potentially retest all-time highs. However, if the price gets rejected at this level and falls back into the blue rectangle, it would imply a false breakout — and could trigger a fresh wave of selling.
As of now, sentiment remains positive. Momentum favors the bulls, but the next few sessions will be critical in determining whether Bitcoin can turn this strong start into a sustainable rally.