Bitcoin price pared all gains and plunged below $88,000. BTC is now recovering losses from the USD 86,700 support but is facing many hurdles.
- Bitcoin started a recovery wave above the $88,000 zone.
- The price is trading above $88,000 and the 100 hourly Simple Moving Average.
- There was a break above a descending channel with resistance at $87,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it remains above the $87,500 zone.
Bitcoin price remains near support
Bitcoin price attempted another surge above $88,500 but failed. BTC erased all gains and plunged below $88,000. However, the bulls were active near the $86,700 zone.
A low was reached at $86,700, and the price recently started to rise again. There was a clear move above the $88,000 resistance and the 50% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.
Moreover, there was a break above a descending channel with resistance at $87,300 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $88,000 and the 100 hourly Simple Moving Average.
If the price remains stable above $87,500, another recovery wave could take place. The immediate resistance is near the $88,500 level. The first major resistance is near the $88,900 level or the 61.8% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.
The next resistance could be $89,500. A close above the resistance at $89,500 could send the price higher. In the mentioned case, the price could rise and test the USD 90,200 resistance. Any further gains could send the price towards the USD 90,500 level. The next threshold for the bulls could be $91,200 and $91,500.
Another drop in BTC?
If Bitcoin fails to rise above the $89,000 resistance zone, it could trigger another decline. Immediate support is near the $87,850 level. The first major support is near the $87,500 level.
The next support is now near the $86,700 zone. Any further losses could send the price towards the USD 85,500 support in the short term. The key support is at $85,000, below which BTC could potentially accelerate lower in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 87,500, followed by USD 86,700.
Major resistance levels – $88,500 and $89,000.