Bitcoin's Slide Continues: Key Levels in Peril as Bearish Pressure Mounts
Bitcoin's price has taken a significant hit, failing to maintain its upward momentum and dipping below the crucial $88,500 mark. The cryptocurrency is currently locked in a downward trend, grappling to stay above the $86,800 level amidst growing bearish sentiment. This latest correction signals a period of vulnerability for BTC, with analysts closely watching key support and resistance zones.
Current Market Downturn
The leading cryptocurrency initiated a fresh decline from the $90,500 zone, breaching multiple support levels, including $89,500 and $88,500. This downturn has seen Bitcoin trade consistently below $88,000 and the 100 hourly Simple Moving Average, indicating a strong bearish grip on the market. A notable bearish trend line is forming with resistance around $87,650 on the hourly chart, which has proven difficult for bulls to overcome. The current trajectory suggests that if the price fails to stabilize above $86,800, further significant losses could be on the horizon.
Critical Support and Resistance Outlook
For Bitcoin to stage any meaningful recovery, it must overcome immediate resistance levels, starting with the $87,650 trend line. A successful push above this, followed by the $88,500 and $89,100 resistance levels, could ignite a fresh recovery wave toward $90,000 and potentially $90,500, with further upside targets at $91,500 and $92,000. Conversely, a failure to break above $88,500 would likely intensify selling pressure. Key immediate support is identified near $87,000, with a major support clustering around $86,750, aligning with the 61.8% Fibonacci retracement level of the recent $84,420 swing low to $90,552 high. Should these supports fail, Bitcoin could slide further towards the $86,000 zone, potentially accelerating losses towards $85,450, and critically, the main support at $84,500. Technical Indicators:
- Hourly MACD: Currently gaining pace in the bearish zone.
- Hourly RSI: Trading below the 50 level, reinforcing bearish sentiment.
- Major Support Levels: $86,750, $86,000.
- Major Resistance Levels: $87,650, $88,500.
