Bitcoin Price Recovery Faces Significant Challenge at Key Resistance Level

Bitcoin's recent attempts at recovery hit a roadblock at $89,250. Currently, BTC is consolidating below $89,000 and could potentially move lower.

Key Takeaways:

Bitcoin initiated a recovery attempt above the $86,800 mark.
The price is currently above $87,000 and the 100-hourly Simple Moving Average.
A vital rising channel is forming, with support at $87,650 on the BTC/USD hourly chart (data sourced from Kraken).
The pair may continue upward if it settles above the $89,500 level.

Bitcoin Price Recovery Faces Crucial Test

Analysis of Bitcoin's Price Resistance

Bitcoin made a bid for a new recovery wave past the $88,200 and $89,000 levels but faced resistance at the $89,250 zone. The price is now stabilizing below $89,000 after a slight decline, having tested the 23.6% Fibonacci retracement level from a recent swing low of $84,421 to a high of $89,238. However, bullish momentum remains effective above the $87,500 mark.

Currently, Bitcoin is trading above $87,500 and above the 100-hourly Simple Moving Average. A key rising channel is also forming, with critical support set at $87,650 on the hourly chart for the BTC/USD pair.

Bitcoin Price Chart
Source: BTCUSD on TradingView.com

If bullish activity continues, Bitcoin could aim for further gains. There is immediate resistance near $89,000, followed by significant resistance at $89,250 and $89,500. A close above the $89,500 level could drive the price higher, potentially testing the $90,500 resistance. If the upward trend persists, the price might reach the $92,000 level, with the next critical barriers being $92,650 and $93,200.

Potential for a Downturn in BTC

Should Bitcoin fail to breach the $89,000 resistance zone, it might initiate another downtrend. Immediate support is positioned around $87,500, with the first major support level at $87,000. Further support is located at the $86,800 zone, coinciding with the 50% Fibonacci retracement level from the upward move between $84,421 and $89,238. Any substantial losses could push the price down toward the $85,500 support in the short term, and the main support resides at $84,400. Falling below this level may accelerate further declines in Bitcoin's price.

Technical Indicators:

Hourly MACD: Currently losing momentum within the bullish zone.
Hourly RSI (Relative Strength Index): Above the 50 level for BTC/USD.
Major Support Levels: $87,500, followed by $86,800.
Major Resistance Levels: $89,000 and $89,500.