Bitcoin Price Retreats from Resistance: Breakdown or Temporary Pause?

Bitcoin's price began to recover above $89,500 but struggled to maintain levels over $90,000. The cryptocurrency is currently declining and may fall further if it breaches the $88,000 mark.

Key Takeaways

Bitcoin has struggled to stay above the $90,000 threshold and is experiencing another decline.
The price remains above $88,200 and the 100-hour simple moving average.
A rising channel is forming with support located at $88,100 on the hourly BTC/USD chart (data sourced from Kraken).
Further declines may occur if the price dips below the $88,000 and $87,500 levels.

Bitcoin Price Backs Off Resistance

Bitcoin Price Encounters Resistance

Bitcoin's price has shown resilience above the $88,000 support, establishing a base before recently initiating a recovery wave above the $88,500 mark. The price exceeded both the $89,000 and $89,500 levels, surpassing the 76.4% Fibonacci retracement level drawn from the downward move that started at $91,098 and dropped to $86,007. Although the bulls managed to push the price above $90,000, they could not maintain it in a positive trend.

Following this moment, Bitcoin experienced a fresh decline below $89,000. Currently, the cryptocurrency is trading above $88,200 and the 100-hour simple moving average. Additionally, a rising channel is visible on the hourly chart of the BTC/USD pair, with support at $88,100. If Bitcoin can maintain its position above $88,000, it may attempt another increase. The immediate resistance is close to the $89,150 level, with the first significant resistance found at $89,800. A stable close above this point could push the price even higher.

Bitcoin Price Source: BTCUSD on TradingView.com

In the best-case scenario, the price could surge and test the resistance at $90,250. Continued gains might propel the price toward $91,200, with the next hurdles for bulls being $92,000 and $92,500.

Possibility of Another Rejection for BTC?

If Bitcoin does not break through the $89,150 resistance zone, it may begin to decline again. The immediate support level is near $88,200, while the first major support area lies at $88,000. Should this support falter, the next support level is around $87,200. Any further losses could bring the price down to the $87,000 support in the short term. Ultimately, the primary support level is at $86,000, below which Bitcoin could face significant challenges in recovering soon.

Technical Indicators

Hourly MACD: The MACD is currently gaining traction in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is below the 50 level.
Major Support Levels: $88,200, followed by $87,000.
Major Resistance Levels: $89,150 and $89,800.