Bitcoin’s price is currently undergoing a correction as it dips below the pivotal $95,000 support level. After trading near the $90,000 benchmark, BTC is now consolidating around $92,500, setting the stage for potential market movements.
Current Market Dynamics
- Bitcoin has initiated a correction, falling below the critical $95,000 zone.
- The price is currently trading under $94,500 and below the 100 hourly Simple Moving Average (SMA).
- A connecting bearish trend line is forming, providing resistance around the $93,500 mark on the hourly BTC/USD chart, sourced from Kraken.
- A breakthrough above the $93,500 resistance zone could trigger another upward surge for the pair.
Bitcoin Price Corrects Gains
Following an attempt to build on recent gains, Bitcoin’s price stumbled, initiating a correction beneath the $97,500 threshold. The cryptocurrency saw a decline past the $96,000 and $95,000 marks, even dipping below $92,000. A temporary low was recorded at $90,736, sparking a recovery as the price climbed past the $91,800 resistance level. This rebound surpassed the 23.6% Fibonacci retracement level, measured from the $98,880 swing high to the recent low of $90,736.
Currently, Bitcoin is trading below the $95,000 mark and remains under the 100 hourly SMA. On the upward trajectory, resistance is anticipated around the $93,500 level, where a bearish trend line is forming. The initial major resistance stands near $94,800, aligning closely with the 50% Fibonacci retracement level from the previous decline.
Should Bitcoin successfully move past the $94,800 resistance, it could pave the way for further price appreciation. The subsequent resistance target would be $95,750, where a sustained break could lead to testing the $97,500 resistance level. Continued upward momentum might drive the price towards the $98,000 milestone.
Potential for Another Decline in BTC?
In the event Bitcoin fails to breach the $93,500 resistance zone, a renewed downside correction could ensue. Immediate support is expected near the $91,800 level, with the first significant support positioned at $90,500. The next critical support area lies around the $90,000 zone, and further declines could push the price towards the $88,000 support in the short term.
Technical Indicators
- Hourly MACD: The MACD is currently gaining momentum within the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is presently below the 50 mark, indicating potential bearish pressure.
- Major Support Levels: $91,800, followed by $90,500.
- Major Resistance Levels: $93,500, and $94,750.
As Bitcoin navigates these volatile market conditions, traders and investors should closely monitor these key levels and technical indicators to make informed decisions.
