Bitcoin, the world’s leading cryptocurrency, recently experienced a short-term correction after reaching the $93,450 mark. Currently, BTC is consolidating its gains near $87,000 and may soon make another upward attempt.
After reaching an all-time high at $93,435, Bitcoin began a minor downward correction. This decline saw the price dip below the $90,000 and $88,000 levels before forming a low at $86,621. The cryptocurrency is now slowly rebounding and trading close to the 23.6% Fibonacci retracement level of its recent decline from the $93,435 peak to the $86,621 trough.
At present, Bitcoin is trading above $87,000, comfortably situated above its 100-hourly Simple Moving Average (SMA). On the upside, the digital asset encounters resistance around the $90,000 level, corresponding to a bearish trend line on the hourly chart of BTC/USD.
This bearish trend line closely aligns with the 50% Fibonacci retracement level of the aforementioned downward move. Key resistance is observed near the $90,850 mark, and an upward breach of this level could propel the price higher. The following resistance points could be $91,500 and subsequently, the $93,450 level. Surpassing these could drive Bitcoin toward the $95,000 resistance zone.
In contrast, if Bitcoin fails to breach the $90,000 resistance barrier, it could trigger another downside correction. Immediate support is positioned around the $87,150 level, with primary support at $86,500. Continuation of this downward trend might push prices toward the $85,280 level and potentially further to the $82,500 support region.
Technical indicators suggest a mixed outlook for Bitcoin. The Hourly Moving Average Convergence Divergence (MACD) indicator is losing momentum in the bearish zone, while the Relative Strength Index (RSI) for BTC/USD stands below the 80 mark, indicating potential for further oscillations.
Major support levels are identified at $87,150 and $86,500, while major resistance levels are noted at $90,000 and $91,500.
