Bitcoin Price Faces Increasing Pressure—Are Bulls Losing Momentum?

Bitcoin's price has corrected its recent gains and has dipped below the $90,000 support level. Currently, BTC is on the rise but may have difficulty surpassing the $90,500 mark.

Key Takeaways

Bitcoin has entered a correction from the $92,500 area.
The price remains beneath $90,000 and the 100 hourly Simple Moving Average.
There is a bearish trend line forming with resistance at $90,650 on the hourly BTC/USD chart (featuring data from Kraken).
The price may continue to rise if it stabilizes above the $90,500 threshold.

Bitcoin Price Faces Increasing Pressure

Bitcoin Price Seeks New Upswing

Bitcoin's price has struggled to gain traction for a rally beyond the $92,000 and $92,500 levels. After initiating a downward correction, the cryptocurrency has traded below the $90,500 support level. The price even dropped below $88,000, but buyers were active near the $87,500 zone, forming a low at $87,582. Currently, the trend is moving upward, having broken above the 23.6% Fibonacci retracement level of the downward move from the $93,561 swing high to the $87,582 low.

As it stands, Bitcoin is trading under $90,000 and below the 100-hourly Simple Moving Average. Should bullish momentum persist, the price could make another attempt at rising. Immediate resistance is located at the $90,000 level, with further significant resistance found around $90,500. Additionally, there is a bearish trend line in place with resistance at $90,650 on the hourly chart for the BTC/USD pair.

Bitcoin Price Chart
Source: BTCUSD on TradingView.com

The next point of resistance could be at $92,000. A closing above this level may push prices upward further, potentially testing the $92,500 resistance. Should there be any additional gains, the price might reach the $93,200 level, with additional resistance barriers at $94,000 and $94,500 for the bulls.

Is Another Decline Ahead for BTC?

Should Bitcoin fail to break above the $90,500 resistance level, there is a risk of initiating a new decline. Immediate support is found near $88,550. The first significant support sits at around $88,000, while further support lies near the $87,500 mark. Extended losses could push the price down toward the $86,500 support level in the short term. The critical support threshold is located at $85,000; if the price falls below this level, BTC could see accelerated losses.

Technical Indicators:

Hourly MACD: The MACD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now above the 50 mark.
Major Support Levels: $88,550, followed by $88,000.
Major Resistance Levels: $90,000 and $90,500.