The cryptocurrency market is abuzz as Bitcoin faces a significant downturn from its recent peaks. After failing to sustain levels above $94,000, BTC has entered a bearish phase, raising concerns among investors about a deeper market correction.
Bitcoin's Recent Dip and Key Resistance
Bitcoin initiated a notable downside correction after failing to overcome the $94,000 resistance zone, with price action falling below the crucial $92,000 support level. This movement saw BTC break below a bullish trend line with support near $91,600 on the hourly chart. Furthermore, it breached the 50% Fibonacci retracement level of its recent upward move from the $87,777 swing low to the $94,583 high. Currently, Bitcoin is trading below $91,200 and the 100-hourly Simple Moving Average, approaching the critical $89,500 support zone.
The Path Ahead: Support and Resistance Zones
For a potential recovery, Bitcoin bulls need to regain strength and push the price back above the $92,000 resistance. Immediate resistance is seen near $91,200, followed by a key hurdle at $91,500. A successful close above $92,000 could pave the way for a rally towards $92,850 and potentially $93,500, with further resistance at $94,000 and $94,500. However, should Bitcoin fail to climb above $92,000, further declines are likely. Immediate support lies near $89,500, with the first major support around $88,800. A break below this could see the price testing the $87,750 zone and, in the near term, even extend losses towards the $86,500 support. The main support at $85,000 remains a critical level, below which BTC's downtrend could accelerate.
Technical Indicators Signal Bearish Momentum
Technical indicators corroborate the bearish sentiment. The Hourly MACD is currently gaining pace in the bearish zone, indicating a stronger downward momentum. Similarly, the Hourly Relative Strength Index (RSI) for BTC/USD is positioned below the 50 level, suggesting that sellers are in control and the asset is not overbought. Investors are advised to conduct their own research as market volatility persists.
