Analyst Predicts Bitcoin Could Hit $86K If Key Levels Break, Moving Averages Signals Strong Support

• Bitcoin must break $67,400 for potential gains toward $86,600, supported by historical CVDD and technical indicators.
• The CVDD indicator, sitting above $20K, signals a strong support level, indicating possible market bottoms and accumulation phases.
• RSI shows Bitcoin is overbought at 76, suggesting a possible short-term pullback, though long-term momentum remains bullish.

According to Ali Martinez, if Bitcoin can surpass $67,400, the next resistance could push the price toward $86,600. His analysis points to potential price action, supported by various technical indicators and Bitcoin’s market cycles. 

Cumulative Value Days Destroyed as a Predictor

A crucial element to watch is the Cumulative Value Days Destroyed (CVDD) indicator, which calculates the value of Bitcoin transactions based on how long the coins were held. The CVDD currently sits just above $20,000, representing a potential long-term support level. 

Historically, when Bitcoin reaches this point, it signals an accumulation phase, where buyers start to reenter the market. The CVDD line is often used to identify market bottoms, indicating strong support at lower price levels.

Resistance at $86,000 and Accumulation Phases

Another important factor in Martinez’s analysis is the black line marking potential market tops. This line reached approximately $90,000 in early 2024, indicating strong resistance. The market may face challenges breaking through this range. 

Martinez also notes two accumulation phases. The first phase, represented by an orange dashed line, hovers around $70,000, suggesting that Bitcoin is still attracting buyers. The second phase, marked by a green dashed line, sits closer to $55,000-$60,000, indicating a solid base where Bitcoin could stabilize before another upward push.

Moving Averages

The 50-period Exponential Moving Average (EMA), located around $64,000, offers short-term support. Meanwhile, the 200-period EMA, near $62,000, provides longer-term support. 

However, the Relative Strength Index (RSI) reveals that Bitcoin is currently in an overbought state, with a value of 76. This signals the potential for a short-term pullback, though the overall trend remains bullish as Bitcoin maintains its upward momentum.