Bitcoin Price Hovering: Surpassing 86K or Falling Straight to 75K?

! Bitcoin (BTC)'s rally has been showing signs of slowing down since the weekend, raising concerns about a possible trend reversal as a series of technical indicators began to signal negatively.

! BTC's recovery slows down | Source: TradingView Specifically, the area around the $86,000 mark is becoming a strong resistance zone and where a large amount of selling pressure is concentrated. The bulls have repeatedly tried to pull the price above this level but have been unsuccessful, showing that the bullish force is clearly weakening. The inability to sustain the upside caused momentum indicators — including simple moving averages (SMA) 50 hours, 100 hours, and 200 hours — to start establishing bearish patterns.

Currently, these three SMAs are overlapping each other in order from low to high and are all trending down. In particular, the SMA 50 and SMA 100 hourly have made a peak and are on the verge of forming a (bearish crossover) "crossing", when the SMA 50 is likely to cross below the SMA 100. Although the Bitcoin price is still above the 200-hour SMA, if a bearish crossing occurs, it will be a clear sign that the bears are gradually gaining the upper hand again.

Besides, the MACD histogram on the daily frame also clearly reflects the weakness in the upward momentum. Specifically, the MACD histogram* has stopped creating taller columns above the zero line – indicating that the bullish momentum is gradually disappearing.

All of the above factors, especially when placed in the context that the 50- and 100-day SMAs are also trending downward, are warnings for bulls to be cautious. If the Bitcoin price breaks through the $83,000 support mark on the hourly timeframe, this could confirm a reversal signal and trigger a wave of sell-offs, pushing the price towards the nearest bottom around the $75,000 mark.

Conversely, in order to regain recovery momentum and maintain its bullish outlook, Bitcoin needs to close the (UTC) day candlestick above $86,000 – an important condition to confirm the uptrend is still valid. If this happens, the market could witness a more pronounced recovery phase in the coming days.

You can see the Bitcoin price here.

*Histogram: is a column chart used to represent the frequency distribution of a continuous data set.

Disclaimer:*** The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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Justin

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