Bitcoin Price Plummets as Bearish Momentum Takes Hold

Bitcoin's recent upward trajectory has been dramatically interrupted, with the cryptocurrency initiating a sharp decline from its $92,000 peak. The digital asset is now down over 5%, as bearish forces exert significant control, leaving market participants to wonder if a deeper correction is on the horizon. Bulls are currently struggling to maintain the price above the critical $86,500 threshold.

A Swift Reversal and Key Breaches

The downturn began when Bitcoin failed to establish a solid footing above the $92,000 resistance zone, triggering a fresh wave of selling pressure. The price sharply dipped below $90,500 and $90,000, decisively breaking a key bullish trend line with support at $89,500 on the hourly BTC/USD chart (Kraken data feed). This breach saw Bitcoin spike below $87,500, hitting a low of $86,500. The asset is currently consolidating these losses, trading beneath both the $90,000 mark and the 100-hour Simple Moving Average, as well as below the 23.6% Fibonacci retracement level of its recent swing high.

The Road Ahead: Resistance and Support

For Bitcoin to reclaim bullish momentum, it must overcome immediate resistance near $87,850. A significant hurdle lies at the $89,200 level, which corresponds to the 50% Fibonacci retracement of the recent $91,928 high to $86,500 low. Should buyers push past this, further increases could target $90,650, then $91,500, with stronger barriers at $92,000 and $92,500. Conversely, if Bitcoin fails to rise above the $87,800 resistance, it faces the risk of an accelerated decline. Immediate support resides near $86,500, followed by a major support level at $86,000. A break below these levels could see the price head towards $85,500 and potentially $83,500 in the near term, with the main support sitting at $82,200. Technical indicators, such as the Hourly MACD, are gaining bearish momentum, while the Hourly RSI for BTC/USD remains below the 50 level, reinforcing the current pessimistic outlook.