Bitcoin Recovery Stalls: $90K Emerges as Key Support Level

Bitcoin's price has begun a recovery, climbing above $88,000, but is now encountering challenges near the $89,500 and $90,000 levels.

Key Takeaways

Bitcoin's recovery is facing resistance around $89,000.
The price is currently above $86,000 and the 100-hour Simple Moving Average.
A bearish trend line is forming at $89,000 on the hourly BTC/USD chart (data from Kraken).
A drop below $86,000 could lead to further declines.

Bitcoin Price Pauses for Breath

Current Market Conditions for Bitcoin

Bitcoin's price managed to stay above $82,000, establishing a solid base. Recently, it initiated a recovery wave, surpassing the resistance at $85,000. The price moved above the $86,500 level, supported by bullish momentum as it crossed the 50% Fibonacci retracement level from the recent drop, which began at a high of $92,872 and fell to $80,595. However, sellers seem to be active just below the $90,000 mark.

Additionally, a bearish trend line is forming, presenting resistance at $89,000 on the hourly chart for the BTC/USD trading pair. Currently, Bitcoin is trading above $87,000 and the 100-hour Simple Moving Average.

Should the bulls attempt another recovery, they might hit resistance near the $88,500 level first. The immediate major resistance is at $89,000, coinciding with the trend line. If the price pushes through, the next hurdle could be at $90,000 or the 76.4% Fibonacci retracement level of the previous decline.

Bitcoin Price Movement
Source: BTCUSD on TradingView.com

A close above the $90,000 resistance could propel the price further upwards, potentially testing the $92,500 level thereafter. Additional gains could lead to challenges near the $93,200 mark, with higher resistance anticipated at $94,500 and $95,000.

Potential for a Decline in BTC

If Bitcoin fails to break past the $89,000 resistance zone, it may trigger another downturn. Immediate support is found at about $86,750, with significant support around $86,000. Further protective levels include the $83,500 zone. If the bearish trend continues, the price might drop towards the $82,500 support in the short term. The main support level stands at $80,000, and a breach below that may lead to accelerated declines.

Technical Indicators

Hourly MACD: Currently losing momentum in the bullish area.
Hourly RSI (Relative Strength Index): Above the 50 level, indicating a slightly bullish sentiment.
Major Support Levels: $86,000 and $83,500.
Major Resistance Levels: $89,000 and $90,000.