Bitcoin Price Analysis: Consolidation Below $92K Amidst Key Resistance
Bitcoin is consolidating below $92,000 after recovering from $85,000, facing immediate resistance and potential declines if it cannot break key levels. Major support levels at $87,000 and $85,000 highlight critical points for market movement.
Bitcoin has commenced a recovery wave from the $85,000 zone, currently trading above $87,500. However, it faces difficulty in overcoming the $92,000 resistance. Despite recent upward movement, BTC remains below $90,000 and the 100 hourly Simple Moving Average, with a short-term contracting triangle observed on the hourly chart, indicating pressure at $89,650 of the BTC/USD pair, which may lead to declines if the price cannot surpass this resistance.
Bitcoin reversed from below the $90,000 level after trading under the $88,000 and $87,000 support zones, eventually testing the $85,000 support. A low of $84,665 was established before a recovery initiated, causing the price to exceed the $86,000 and $87,000 resistance. Currently, Bitcoin is below $90,000 with immediate resistance noted at $88,700 and critical resistance appearing near $90,000. The contracting triangle signals further resistance at $89,650, near the 61.8% Fibonacci retracement level of a previous downward move.
Should Bitcoin manage to close above the key resistance level of $92,000, it is poised for further increases. This could allow the price to test resistance levels at $93,500 and potentially rise to $95,000 or $96,200. Conversely, failing to rise above $90,000 could trigger a fresh decline, making immediate support near $87,000 critical, followed by significant support at $86,200 and the more substantial $85,000, with major losses risking a drop towards $82,000 and eventual support around $80,000.
Technical indicators reflect a weakening bullish momentum in the MACD, while the Relative Strength Index (RSI) stands below the neutral mark of 50, highlighting market hesitance. Major support levels are identified at $87,000 and $85,000, while significant resistance points are established around $90,000 and $92,000.
In summary, Bitcoin is currently consolidating below $92,000 after a recovery from $85,000. It faces strong resistance at $90,000 and $92,000, which may dictate the next move. A failure to clear these levels could result in declines towards major support zones, while successful penetration might lead to new highs. Technical indicators suggest a cautious market trajectory with an emphasis on immediate resistance and support levels.
Original Source: www.tradingview.com
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