Bitcoin Price Loses $90K, Traders Brace for a Volatile Next Move

Overview

Bitcoin has experienced a significant decline, dropping below the $90,000 mark. The cryptocurrency is currently consolidating its losses and faces further risks if it falls below the $88,000 support level.

Recent Price Movements

Bitcoin’s price journey has taken a downward turn, starting with a notable drop below the $92,000 and $90,000 thresholds. The cryptocurrency is now trading under the $90,000 mark and below the 100 hourly Simple Moving Average, indicating a bearish trend. A trend line has formed with resistance around $94,200 on the hourly chart of the BTC/USD pair. This trend suggests that if Bitcoin remains under the $92,000 zone, it may continue its descent.

The price of Bitcoin has dipped approximately 5%, failing to maintain support above $92,500. Following this failure, Bitcoin declined sharply, breaching critical support levels at $91,000 and $90,500, and ultimately falling below $90,000. A low was recorded at $87,784, and while there has been a minor recovery above $88,500, the price continues to stay beneath the 23.6% Fibonacci retracement level of the recent decline from the swing high of $95,475 to the aforementioned low.

Currently, Bitcoin is trading under the $90,000 level and the 100 hourly Simple Moving Average. If the price can hold steady above $88,000, there is potential for a fresh increase. Immediate resistance is identified near the $89,600 level, while the first key resistance is located around $90,000. The next potential resistance could be at $91,650, which aligns with the 50% Fibonacci retracement level of the recent decline. A close above this resistance could potentially lead to further upward movement in Bitcoin’s price.

Conversely, if Bitcoin fails to break above the $91,650 resistance zone, it may initiate another decline. Immediate support is found near the $88,800 level, with major support levels at $88,000 and $87,500. Should losses continue, Bitcoin may approach the $86,200 support level in the near term. The primary support level is positioned at $85,000, below which Bitcoin could see an acceleration in its downward trend.

From author

The current price trend of Bitcoin highlights the volatility and unpredictability that often characterizes the cryptocurrency market. The formation of a bearish trend line and the inability to hold key support levels suggest that traders should remain cautious. Monitoring resistance and support levels will be crucial in determining the next potential price movements for Bitcoin.

Impact on the crypto market

• Bitcoin’s decline below $90,000 may influence trader sentiment and behavior across the market.
• The formation of a bearish trend line could lead to increased caution among investors, potentially resulting in lower trading volumes.
• Continued pressure on Bitcoin may spill over into other cryptocurrencies, affecting their price stability and market dynamics.
• Key support levels are critical indicators for traders, and breaches below these levels could prompt further selling activity.
• Resistance levels will be closely watched as potential turning points for Bitcoin’s price, impacting overall market trends.