Bitcoin Price Rejection Sparks Bearish Pressure—Support Under Threat?

Overview

Bitcoin has faced a significant setback after attempting to rise above the $90,000 mark, ultimately failing to maintain momentum. As a result, the cryptocurrency is now consolidating below key resistance levels, raising concerns about potential bearish pressure.

Recent Bitcoin Price Movements

Bitcoin’s recent price action has shown a struggle to gain traction, particularly after an unsuccessful attempt to break through the $90,000 resistance zone. Following this peak, Bitcoin experienced a notable decline, dropping below the $88,000 threshold. Currently, Bitcoin is trading below $87,500 and has broken below a bullish trend line that previously provided support at $86,450 on the hourly chart of the BTC/USD pair.

As Bitcoin attempted to surge above the critical levels of $88,000 and $88,500, it encountered resistance and sharply declined. This downward movement saw the price dip below the $86,000 support level, although buying interest emerged near the $85,250 area, where a low was established at $85,282. Following this, Bitcoin initiated a minor correction, moving above the 23.6% Fibonacci retracement level of the decline from the $90,318 swing high to the $85,282 low.

Despite this brief corrective phase, Bitcoin remains under pressure, trading below the $87,000 level and the 100 hourly Simple Moving Average. The bearish sentiment is further illustrated by the active selling near the $87,000 mark. Immediate resistance is identified at the $86,800 level, with key resistance levels at $87,350 and $87,800. Should Bitcoin manage to close above the $87,800 resistance, it may have the potential to rally towards the $88,000 resistance level.

Conversely, if Bitcoin fails to overcome the $87,800 resistance, it risks initiating another decline. The immediate support level is identified near $85,500, with further significant support at $85,250 and the $85,000 zone. Should the selling pressure continue, Bitcoin could test lower support levels, including $84,200 and ultimately the main support at $83,500, below which a more pronounced decline may occur.

From author

The current state of Bitcoin highlights the volatility and uncertainty that often characterizes the cryptocurrency market. The inability to maintain upward momentum after approaching significant resistance levels raises questions about the strength of the current bullish sentiment. As Bitcoin navigates this challenging period, traders and investors will be closely monitoring key support and resistance levels for indications of future price movements.

Impact on the crypto market

• Bitcoin’s struggle to maintain upward momentum may lead to increased bearish sentiment among traders.
• The breach of key support levels could trigger further selling pressure across the market.
• Resistance levels at $87,800 and $88,000 will be crucial in determining the near-term price direction for Bitcoin.
• The overall market may experience volatility as investors react to Bitcoin’s price fluctuations.
• A failure to hold above significant support levels could impact the broader cryptocurrency ecosystem, influencing altcoin movements as well.