The Bitcoin price made an attempt to initiate a new upward trend but encountered resistance at $89,250. Currently, BTC is stabilizing below $89,000 and may face a downward adjustment.
- Bitcoin embarked on a recovery phase above the $86,800 region.
- The price is currently trading above $87,000 and the 100-hour Simple Moving Average.
- A significant rising channel is developing with support positioned at $87,650 on the hourly chart for the BTC/USD pair (data feed from Kraken).
- The pair may continue to ascend if it establishes itself above the $89,500 level.
Bitcoin Price Encounters Resistance
The Bitcoin price attempted a new recovery above both $88,200 and $89,000. BTC tested the resistance zone at $89,250 but struggled to push higher.
The price is currently consolidating gains below $89,000. A minor decline has led it to test the 23.6% Fibonacci retracement level of the ascent from the $84,421 swing low to the $89,238 high. Nevertheless, bulls remain active above $87,500.
Bitcoin is presently trading above $87,500 and the 100-hour Simple Moving Average. A significant rising channel is also forming, with support at $87,650 on the hourly chart of the BTC/USD pair.
Should the bulls maintain momentum, the price could strive for additional gains. Immediate resistance is positioned around the $89,000 mark, with the first key resistance near $89,250. The next level of resistance could be at $89,500. A close above this resistance may propel the price further upward, potentially testing the $90,500 resistance. Further gains might see the price approach $92,000, with the next hurdles for the bulls being $92,650 and $93,200.
Is Another Decline Imminent for BTC?
If Bitcoin fails to breach the $89,000 resistance zone, it might initiate another decline. Immediate support is located near $87,500, while the first significant support is at $87,000.
The following support lies around the $86,800 zone, coinciding with the 50% Fibonacci retracement level of the ascent from the $84,421 swing low to the $89,238 high. Additional losses may drive the price toward the $85,500 support in the near term. Key support is at $84,400; if this level is breached, BTC could see a swift decline in the near future.
Technical indicators:
Hourly MACD – The MACD is currently slowing down in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $87,500, followed by $86,800.
Major Resistance Levels – $89,000 and $89,500.
