Bitcoin price saw a short-term correction from the $93,450 zone. BTC is now consolidating gains near $87,000 and could attempt another surge in the near term.
- Bitcoin started a downward correction from the $93,450 zone.
- The price is trading above USD 87,000 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $90,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a new rise if it remains above the $87,000 zone.
Bitcoin Price Begins Downward Correction
Bitcoin price tried to make more gains above the USD 93,000 level. BTC traded to a new all-time high at $93,435 and recently started a short-term downward correction.
There was a small decline below the $90,000 level. The price even fell below the $88,000 level. A low was formed at $86,621 and the price is now consolidating. It is slowly moving higher and is trading near the 23.6% Fib retracement level of the downward move from the $93,435 swing high to the $86,621 low.
Bitcoin price is now trading above $87,000 and the 100 hourly Simple Moving Average. On the upside, the price could encounter resistance around the USD 90,000 level. A connecting bearish trendline is also forming with resistance at $90,000 on the hourly chart of the BTC/USD pair.
The trendline is close to the 50% Fib retracement level of the downward move from the $93,435 swing high to the $86,621 low. The first major resistance is around the $90,850 level. A clear move above the USD 90,850 resistance could push the price higher.
The next major resistance could be at USD 91,500. A close above the $91,500 resistance could lead to more gains. In the said case, the price might rise and test the USD 93,450 resistance level. Any further gains could send the price towards the USD 95,000 resistance level.
More disadvantages of BTC?
If Bitcoin fails to rise above the $90,000 resistance zone, a downward correction could occur. The immediate downside support is near the $87,150 level.
The first major support is near the $86,500 level. The next support is now near the $85,280 zone. Any further losses could send the price towards the USD 82,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 80 level.
Major support levels – USD 87,150, followed by USD 86,500.
Major resistance levels – $90,000 and $91,500.
