Bitcoin's Tumbling Act: Is the Downtrend Seizing Control?
Bitcoin recently experienced a significant price correction, shedding approximately 5% of its value and trading below the crucial $88,000 support zone. This downturn has left BTC consolidating its gains, struggling to reclaim the $88,500 mark and raising questions about the cryptocurrency's immediate future. The sharp decline originated from the $90,500 level, painting a bearish picture as Bitcoin now hovers below both the $88,000 threshold and its 100-hour Simple Moving Average.
Deep Dive into Current Price Action
The digital asset's recent attempts to breach the $90,000 and $90,500 resistance levels proved futile, triggering a fresh wave of decline that pushed it beneath the $88,500 support. While prices briefly dipped below $87,000, a resilient bullish presence near the $85,000 zone provided some stability, with a low established at $85,151. Currently, Bitcoin is consolidating below the 23.6% Fibonacci retracement level, indicating a struggle to recover from the downward swing from its $93,560 high. Immediate resistance is pegged near $87,150, with the first significant hurdle at $87,500. A definitive move above $88,000 could signal a potential resurgence, potentially testing $89,000, where a bearish trend line also resides on the hourly chart. Further gains would set sights on $90,000, and potentially $91,000 to $91,500.
The Looming Threat of Further Declines
Should Bitcoin fail to overcome the $87,000 resistance zone, a renewed downward trajectory seems plausible. Immediate support lies at $85,500, with a critical major support level at $85,000. Subsequent losses could see the price falling towards $83,500 and $82,500 in the near term. The ultimate main support is positioned at $80,000, a breach of which could trigger a rapid acceleration of further price depreciation. Technical indicators underscore this cautionary outlook: the Hourly MACD is showing a loss of momentum within the bearish zone, and the Relative Strength Index (RSI) for BTC/USD is currently trading below the 50 level, reflecting weakening buying pressure.
