Bitcoin Navigates Critical Thresholds as Traders Eye Next Move
Bitcoin has shown a significant recovery, moving past the $88,000 mark, and is currently consolidating its gains below $89,000. The leading cryptocurrency is at a pivotal point, with traders closely watching whether it can sustain its upward momentum or face renewed selling pressure.
The Path to Further Gains
Following a strong recovery wave, Bitcoin successfully breached the $88,800 resistance and even tested the $90,500 level. While it briefly dipped below the 23.6% Fib retracement of its recent swing from $84,420 to $90,552, BTC remains resilient, trading above the $87,800 zone and the 100 hourly Simple Moving Average. A crucial bullish trend line is providing support near $87,900 on the hourly chart. Should Bitcoin firmly establish itself above the $89,100 resistance, further upside extensions could target key levels at $89,500 and $90,500. A definitive close above $90,500 could propel the price towards $92,000, with potential extensions to $92,500, $93,200, and even $93,500.
Risks of a Downward Correction
Despite the recent recovery, a failure to clear the $89,500 resistance zone could trigger another decline. Immediate support for Bitcoin lies near $88,000, coinciding with the established bullish trend line. The first major support is identified at $87,500. A break below this level could see the price drop towards $86,750, which aligns with the 61.8% Fib retracement level. Sustained losses below this point might push Bitcoin towards $85,450. The ultimate critical support sits at $84,500; a breach here could lead to a more pronounced acceleration of downward movement. Technical indicators, such as the Hourly MACD losing bullish pace and the Hourly RSI currently below the 50 level, suggest a cautious sentiment among traders.
