Bitcoin Faces Make-or-Break Resistance at $87,200

Bitcoin's horizontal resistance level is around $86,984. The previous intraday wicks tend to go up to around the $87,200-$87,300 level.

Bitcoin is trading at $85,468 at the moment, according to CoinGecko.

Notably, this test of the resistance level comes just days after Bitcoin broke above the $87,000 level after some surprisingly poor U.S. employment figures. U.S. jobs only grew by 29,000 for the month of September. The unemployment rate also climbed to 4.2%. Bitcoin managed to hold on to the gains just under the $87,000 level after the news.

The importance of the level

The bulls have failed several times to get a sustained breakout above the $87,000/$87,200 level.

Bitcoin did break above from the low $82,000s to the $87,200 area in late September. There was then a pullback down to the $82,700 area or so. Then, there was a bounce off from there. There was another attempt to push up towards the $87,000 level, which was pretty quickly rebuffed. Bitcoin then pulled back down towards the $84,000-$84,500 area.

However, the latest pullback occurred to a much higher low than the September 28 low. So that's a bit of a positive thing short-term. That said, multiple failures to break through the $87,000 level do mean at the very least that there is strong resistance at that level still. Hence, bulls really need to break through there as their key resistance.