Bitcoin Price Continues to Decline, Approaching Crucial Support Levels

Bitcoin's price has embarked on a downward correction from $94,500. Currently, BTC is facing challenges and may fall towards a significant support level at $89,000.

Key Takeaways

Bitcoin has begun a downward correction below the $92,000 mark.
The price is trading under the $92,000 threshold and the 100 hourly Simple Moving Average (SMA).
A bearish trend line has formed with resistance at $92,650 on the hourly BTC/USD chart (data sourced from Kraken).
If Bitcoin remains below the $92,500 level, it may continue to decline further.

Bitcoin Price Dips Further

Bitcoin Price Faces a Downward Correction

The price of Bitcoin was unable to maintain its position above $94,000, initiating a downward correction. BTC fell below $93,200 and $92,500, entering a short-term bearish phase. It dropped below the $92,000 mark, testing a low of $90,650, where it formed a low at $90,666 and is currently consolidating its losses. The price has tested the 23.6% Fibonacci retracement level of the latest decline from the swing high of $93,771 to the low of $90,666.

At present, Bitcoin is trading below both $92,000 and the 100 hourly Simple Moving Average. Additionally, a bearish trend line is in formation with resistance at the $92,650 level on the hourly chart for BTC/USD.

If Bitcoin holds steady above $90,500, it may seek to initiate a fresh upward movement. Immediate resistance is identified around the $91,400 level. The first major resistance stands at $92,200, coinciding with the 50% Fibonacci retracement level of the decline from $93,771 to $90,666.

Bitcoin Price
Source: BTCUSD on TradingView.com

The next resistance level could potentially be at $92,500. A close above this resistance level could pave the way for a further price increase. In that scenario, Bitcoin could rise and test the $93,050 resistance level, with additional gains potentially pushing the price towards $93,800. The next significant challenges for buyers would be at $94,000 and $94,500.

Potential for Further Declines in Bitcoin

Should Bitcoin fail to overcome the $92,500 resistance level, it may initiate another decline. Immediate support can be found at the $90,500 level, while the first major support lies at the $90,000 mark. The next significant support is at approximately $89,000. A continuation of losses might drag the price down towards the $87,200 support level in the near term. The main support level is situated at $86,000, below which BTC could experience a more significant downtrend.

Technical Indicators:

Hourly MACD: The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now positioned below the 50 level.
Major Support Levels: $90,500, followed by $90,000.
Major Resistance Levels: $92,200 and $92,500.