Bitcoin Price Declines from Recent Highs—Could a Major Correction Be Coming?

Bitcoin's price was unable to sustain momentum above $94,000 and is now exhibiting bearish trends, potentially falling below $89,500.

Key Takeaways

Bitcoin has initiated a downward correction from the $94,500 range.
Current trading is below $92,000 and below the 100 hourly Simple Moving Average.
A bearish trend line has formed with a critical support level at $91,600, as observed on the hourly BTC/USD chart.
If Bitcoin settles below the $89,500 support level, further declines are likely.

Bitcoin Price Slides From Peak Levels

Current Trends in Bitcoin Pricing

Bitcoin's price has struggled to maintain upward momentum beyond the $94,000 and $94,500 thresholds. It has entered a corrective phase and has fallen under the $92,000 support level.

The price has dipped below the 50% Fibonacci retracement level of the upward movement, calculated from a low of $87,777 to a peak of $94,583. Additionally, a bearish trend line has formed, breaking past the support at $91,600 on the hourly BTC/USD chart.

Currently, Bitcoin is trading below $91,200 and the 100 hourly Simple Moving Average, inching closer to the $89,500 support level, along with the 76.4% Fibonacci retracement level from the earlier noted highs and lows.

Bitcoin Price Source: BTCUSD on TradingView.com

Should the bulls regain strength, an attempt to climb higher could occur. The immediate resistance appears near the $91,200 range, while the first significant resistance is at $91,500. A breakthrough above $92,000 could push Bitcoin further upward, possibly testing the $92,850 resistance level. Any significant upward movement might lead to a rise toward $93,500, with further resistance at $94,000 and $94,500.

Potential for Further Bitcoin Losses

If Bitcoin fails to climb past the $92,000 resistance area, a new decline could be triggered. Immediate support remains at $89,500, with the first major support point near $88,800.

Subsequent support levels are situated around $87,750, and additional losses may steer the price down towards the $86,500 support area in the short term. The main support level is established at $85,000; falling below this could intensify downward momentum for BTC in the near future.

Technical Indicators to Watch:

Hourly MACD: Showing increased bearish momentum.
Hourly RSI (Relative Strength Index): Currently below the 50 mark.
Major Support Levels: $89,500, followed by $88,800.
Major Resistance Levels: $91,200 and $92,000.