Bitcoin price started a downward correction from $94,500. BTC is struggling now and could fall towards the key support at USD 89,000.
- Bitcoin started a downward correction and traded below the $92,000 zone.
- The price is trading below $92,000 and the 100 hourly Simple Moving Average.
- A bearish trendline is forming with resistance at $92,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it remains below the $92,500 zone.
Bitcoin Price Begins Downward Correction
Bitcoin price failed to stay above $94,000 and started a downward correction. BTC fell below USD 93,200 and USD 92,500 to enter a short-term bearish zone.
The price even fell below $92,000 and tested $90,650. A low was formed at $90,666 and the price is now consolidating losses. It tested the 23.6% Fib retracement level of the recent decline from the $93,771 swing high to the $90,666 low.
Bitcoin is now trading below $92,000 and the 100 hourly Simple Moving Average. Moreover, a bearish trendline is forming with resistance at $92,650 on the hourly chart of the BTC/USD pair.
If the price remains stable above $90,500, another increase could be attempted. Immediate resistance is near the $91,400 level. The first major resistance is near the $92,200 level and the 50% Fib retracement level of the recent decline from the $93,771 swing high to the $90,666 low.
The next resistance could be $92,500. A close above the USD 92,500 resistance could send the price rising further. In the mentioned case, the price could rise and test the USD 93,050 resistance. Any further gains could send the price towards the USD 93,800 level. The next barrier for the bulls could be $94,000 and $94,500.
More disadvantages of BTC?
If Bitcoin fails to rise above the USD 92,500 resistance zone, it could trigger another decline. The immediate support is approaching the USD 90,500 level. The first major support is near the $90,000 level.
The next support is now near the $89,000 zone. Any further losses could send the price towards the USD 87,200 support in the near term. The key support is at $86,000, below which BTC could potentially accelerate lower in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 90,500, followed by USD 90,000.
Major resistance levels – $92,200 and $92,500.