Bitcoin Nears ‘Historic’ Technical Test As Price Eyes $93,500 Barrier – What’s Next?

As Bitcoin (BTC) breaks out of key resistance levels, an analyst suggests that the cryptocurrency is positioning itself for a move to higher levels and a retest of a crucial technical area in the coming weeks.

On Tuesday, Bitcoin surged 2.5% to retest the $93,500 resistance level for the first time in a week. The cryptocurrency has been hovering between the $84,000 to $93,500 price range for three months and has failed to turn this level into support multiple times.

The market watcher explained that BTC is approaching its dynamic Bull Market Exponential Moving Average (EMA) cluster, where the 50-week EMA and 21-week EMA are getting closer.

This key cluster, currently located between the $96,000 and $97,500 levels, has historically been tested before a “meaningful crossover,” with the Bitcoin price overextending beyond the cluster.

Notably, past cycles reveal that the 50-week and 21-week EMAs can move very close together, Rekt Capital wrote, emphasizing that they can even overlap for prolonged periods before a decisive crossover.

Currently, Bitcoin has yet to retest and overextend beyond the two EMAs, but its historical performance suggests that it will likely occur. Moreover, BTC’s price is “positioning itself in a way that could allow for a springboard higher, potentially enabling a test of this cluster in the weeks ahead. The key question is timing.”

This marks “a small but notable technical milestone” as Bitcoin now holds above the November and December highs in the weekly timeframe, treating the previous resistance as support.

In addition, the mid-zone of its local range, around the $90,500 level, is now “almost perfectly confluent with the former Downtrend, meaning the Downtrend that last week rejected price is beginning to act as layered support instead.”

Now, the flagship crypto has successfully retested the downtrend breakout area as support and momentarily reclaimed the $93,500 resistance, surging above the $94,000 area once again.

As of this writing, BTC trades at $94,334, a 2.6% increase in the weekly timeframe.