Bitcoin has experienced a notable decline after failing to maintain its position above $95,500, currently trading below $94,500. Analysts suggest that the cryptocurrency could retest the $91,200 support zone if the downward trend continues.
The recent fluctuations started when Bitcoin attempted a rally above the $93,500 resistance level. It was able to break through the $94,200 and $94,500 levels, even surpassing the $95,000 level initially. However, these gains were short-lived as Bitcoin reversed course, dropping below the $93,500 level and establishing a low of $92,950. Currently, it is consolidating these losses and is hindered by a bearish trend line that is forming at approximately $94,000.
This trend line aligns with the 23.6% Fibonacci retracement of the recent decline, which spans from a swing high of $97,308 to the recent low. As it stands, Bitcoin ’s price is situated underneath both the $95,000 level and the 100-hour simple moving average. Immediate resistance is observed around the $94,000 level, with the next significant resistance set near $95,000. A decisive movement above $95,000 could potentially propel the price toward $96,500, availing further gains towards $98,000.
Conversely, if Bitcoin does not manage to reclaim the $94,500 resistance, it may continue to trend downwards. Initial support is positioned at $93,500, followed by more critical support levels at $92,800 and $92,500. Should the downward trajectory persist, it could lead to the price testing the lower support area of $91,200 in the near term.
Technical indicators suggest that momentum is favoring the bearish side, with the MACD indicating a growing bearish sentiment and the RSI resting below the neutral threshold. Traders will be closely monitoring these levels for potential signs of reversal or further decline.
