Bitcoin has encountered difficulties maintaining its upward trajectory, experiencing a correction beneath the crucial $95,000 support level. The cryptocurrency traded near the $90,000 level, currently stabilizing around $92,500 as market dynamics shift.
The recent downturn began as Bitcoin fell below the $97,500 threshold, subsequently trading below both the $96,000 and $95,000 levels. Its lowest point reached approximately $90,736, though the price has since begun a recovery, managing to surpass the $91,800 resistance point. During this upward movement, Bitcoin also broke above the 23.6% Fibonacci retracement level from the recent decline, signaling a potential for further gains.
Despite this temporary increase, Bitcoin remains below $95,000 and the 100-hour Simple Moving Average, indicating lingering challenges. Resistance is currently expected near the $93,500 level, where a bearish trend line is forming. Should the price surpass this level, it would encounter further resistance around $94,800, which coincides with the 50% Fibonacci retracement level of the previous downward movement.
A decisive move above the $94,800 resistance could pave the way for prices to test the $95,750 level and possibly aim toward $97,500. However, should Bitcoin fail to break through the $93,500 resistance, it risks triggering an additional decline. Key support levels exist at $91,800 and $90,500, with a significant drop towards the $90,000 area being a possibility if momentum shifts negatively. In the event of further losses, the next notable support may occur near the $88,000 level.
Current technical indicators show the hourly MACD gaining bullish momentum, while the Relative Strength Index (RSI) remains below 50, reflecting a cautious market sentiment.
