Bitcoin Price Retreats, Increasing Downside Concerns

Bitcoin's price has struggled to maintain its momentum, failing to break through the $90,000 mark. Currently, BTC is consolidating its losses and may find it challenging to remain above $86,500.

Key Takeaways

Bitcoin attempted a recovery but could not surpass $90,000, resulting in a price drop.
Currently trading below $88,000 and the 100-hour Simple Moving Average.
A bearish channel is forming, indicating resistance at $87,500 for BTC/USD.
If the price falls below $86,500, it may continue to decline.

Bitcoin Sell-Off Continues

Bitcoin has recently attempted to recover but was unable to overcome key resistance levels. Its price has dipped below $88,000 and is facing bearish pressure. Factors such as a declining channel formation and key support levels suggest potential further declines if the price does not stabilize.

Bitcoin Price Declines Significantly

Bitcoin started to show some recovery after bouncing back above $88,500 and initially broke the $89,000 barrier. However, it struggled near $90,000, peaking at $90,298 before facing strong selling pressure. Shortly thereafter, the price dropped sharply below $89,000 and briefly fell below $88,000, reaching a low of $86,700. It is now consolidating losses beneath the 23.6% Fibonacci retracement level from the recent drop.

At present, Bitcoin is trading below $88,000 and the 100-hour Simple Moving Average. Should the price maintain above the $86,500 level, there may be a chance for another recovery attempt. Immediate resistance exists at around $87,500, along with a declining channel visible on the BTC/USD hourly chart.

The first major resistance level is near $88,000, with subsequent resistance likely at $88,500 and the 50% Fibonacci retracement from the recent high to the low.

Bitcoin Price
Source: BTCUSD on TradingView.com

If Bitcoin closes above the $88,500 resistance level, this could encourage further upward movement, testing the $89,200 mark. Continued gains may then push the price towards $90,000, with the next crucial barriers at $90,500 and $91,200.

Is Another Decline Ahead for BTC?

On the flip side, if Bitcoin cannot break through the $88,500 resistance zone, another decline may be imminent. Immediate support is found near $86,500, with major support at $86,000. If pressure continues, Bitcoin could reach the $85,500 support level. Significant losses might lead the price down to the $85,000 support level in the short term, with substantial support resting at $83,500, below which BTC could see sharper declines.

Technical Indicators

Hourly MACD: The MACD is gaining momentum in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD currently sits below the 50 level.
Major Support Levels: $87,500 followed by $86,000.
Major Resistance Levels: $86,500 and $88,000.