Bitcoin's Recovery Stalls: Bears Eye a Drop Below $90,000
Bitcoin's recent attempt to reclaim higher ground is showing signs of exhaustion, with the cryptocurrency struggling to maintain momentum above the critical $90,000 mark. After a brief rally, BTC faces significant resistance, prompting concerns among investors about a potential return to bearish trends.
Price Action and Key Resistance Levels
Following a period of consolidation above $88,500, Bitcoin initiated a recovery wave, pushing its price beyond the $90,000 threshold and briefly touching a high of $91,878. Despite trading above the $90,000 level and the 100-hourly Simple Moving Average, the upward movement has met stiff opposition. A notable short-term bullish trend line with support at $90,800 on the hourly chart has been breached, signaling weakening bullish control. Immediate resistance is identified near $91,200, with further key resistance at $92,000 and $92,500. A decisive close above $92,500 would be crucial for bulls to test higher targets like $93,750, $94,500, and potentially $95,000-$95,500.
Looming Downside Risks and Support Zones
However, the outlook remains precarious. Should Bitcoin fail to surmount the $92,000 resistance zone, it could trigger a fresh decline. Initial support lies at $90,500, followed by a more significant level at $89,080, which aligns with the 50% Fib retracement level of the recent swing low to high. Further losses could see the price drop towards $88,450, with the main support critically positioned at $86,300. A break below this level could accelerate downward momentum. Technical indicators reinforce this cautious sentiment, with the Hourly MACD losing pace in the bullish zone and the Hourly Relative Strength Index (RSI) falling below the 50 level, suggesting a weakening bullish impulse and increasing bearish pressure.
