Bitcoin Price Drops Below $90K: Traders Prepare for Market Volatility

Bitcoin's price has started a significant decline, dipping below the $90,000 mark. Currently, BTC is consolidating its losses and may be at risk of further decline if it falls below $88,000.

Key Takeaways

Bitcoin's price has declined sharply below $92,000 and is now trading under $90,000.
A bearish trend is evidenced on the hourly chart, with resistance forming near $94,200.
If BTC stays below $92,000, it may continue to decrease.
Immediate resistance levels to watch are at $89,600 and $90,000.
Key support levels are established at $88,800 and $88,000.

Bitcoin Price Rejection Sparks Bearish Pressure

Bitcoin Price Sees a 5% Drop

Bitcoin's price was unable to maintain its position above the $92,500 support level, initiating a fresh decline. The cryptocurrency dropped significantly, losing support at both $91,000 and $90,500. Eventually, BTC fell below the $90,000 threshold, hitting a low of $87,784. Although there was a minor recovery above $88,500, the price remains below the 23.6% Fibonacci retracement level from the recent decline, which started at the $95,475 swing high and fell to the $87,784 low.

Currently, Bitcoin is trading below $90,000, as well as the 100 hourly Simple Moving Average. If the price manages to stay above $88,000, there is a possibility of a fresh upward movement. The immediate resistance can be found around the $89,600 level, with a crucial resistance point at $90,000. If Bitcoin can break through the $91,650 resistance, it may continue to rally, potentially testing the $92,000 level.

Bitcoin Price
Source: BTCUSD on TradingView.com

Should Bitcoin record further gains, it may aim for the $94,000 level. A bearish trend line is forming, with resistance at $94,200 on the hourly chart of the BTC/USD pair. Bulls will also face additional hurdles at the $95,000 and $95,500 marks.

Potential for Additional Declines in BTC

If Bitcoin cannot recover and rise above the $91,650 resistance zone, it may initiate another downturn. Immediate support is situated around the $88,800 level, while the first significant support is at $88,000. The next support level emerges near the $87,500 range. If losses continue, Bitcoin’s price may reach the $86,200 support soon. The primary support to keep an eye on is at $85,000; falling below this level could trigger a more accelerated decline in Bitcoin’s price.

Technical Indicators:

Hourly MACD: Currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index): Now below the 50 level.
Major Support Levels: $88,800, followed by $88,000.
Major Resistance Levels: $91,650 and $92,000.