Bitcoin Price Plummets After Failing to Break $90,000, Downside Risks Mount

Bitcoin (BTC) has experienced a significant downturn, erasing recent gains as it failed to maintain momentum above the critical $90,000 threshold. The cryptocurrency is now grappling with consolidating losses, with analysts closely watching whether it can stabilize above the $86,500 mark amidst increasing bearish pressure.

Sharp Dip Follows $90K Rejection

After an initial attempt to stage a recovery and push past $88,500, Bitcoin briefly surpassed the $89,000 barrier but met strong resistance near $90,000. A peak was established at $90,298 before a sharp sell-off ensued, driving the price back below $89,000 and subsequently $88,000. Currently, BTC is consolidating around $86,700, trading beneath both the $88,000 level and the 100-hourly Simple Moving Average. Technical analysis reveals a declining channel with immediate resistance identified at $87,500, coinciding with the 23.6% Fibonacci retracement level of the recent downturn. Should Bitcoin regain strength, key resistance levels lie at $88,000, $88,500 (which also aligns with the 50% Fib retracement), and further up at $89,200, $90,000, $90,500, and $91,200.

Looming Threats and Key Support Levels

The prospect of further declines for Bitcoin remains high if it struggles to overcome the $88,500 resistance zone. Immediate support is found near $86,500, with more significant levels at $86,000 and $85,500. A breach below these could accelerate losses, potentially pushing the price towards $85,000 in the short term, with the main critical support positioned at $83,500. Technical indicators underscore the bearish sentiment, as the Hourly MACD shows momentum gaining in the bearish zone, and the Hourly Relative Strength Index (RSI) for BTC/USD has dipped below the 50 level, signaling weakening buying interest.