Bitcoin Price Erases Recent Gains, Raising Fresh Downside Risks

Source: CryptoNewsNet Original Title: Bitcoin Price Erases Recent Gains, Raising Fresh Downside Risks Original Link:

Price Action Summary

Bitcoin started a recovery wave but failed to surpass $90,000. BTC is now consolidating losses and might struggle to stay above $86,500.

Recent Market Movement

Bitcoin price attempted a fresh increase above $88,500 and initiated a recovery wave. BTC even climbed above the $89,000 barrier but struggled near $90,000.

A high was formed at $90,298 before the bears appeared. There was a sharp downside reaction below $89,000. BTC trimmed all gains and even dived below $88,000. A low was formed at $86,700, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.

Bitcoin is now trading below $88,000 and the 100 hourly Simple moving average. If the price remains stable above $86,500, it could attempt a fresh recovery wave. Immediate resistance is near the $87,500 level. There is a declining channel forming with resistance at $87,500 on the hourly chart of the BTC/USD pair.

Resistance Levels

The first key resistance is near the $88,000 level. The next resistance could be $88,500 and the 50% Fib retracement level of the downward move from the $90,298 swing high to the $86,700 low.

A close above the $88,500 resistance might send the price further higher. In that case, the price could rise and test the $89,200 resistance. Any more gains might send the price toward the $90,000 level. The next barrier for the bulls could be $90,500 and $91,200.

Downside Scenario

If Bitcoin fails to rise above the $88,500 resistance zone, it could start another decline. Immediate support is near the $86,500 level. The first major support is near the $86,000 level.

The next support is now near the $85,500 zone. Any more losses might send the price toward the $85,000 support in the near term. The main support sits at $83,500, below which BTC might accelerate lower in the near term.

Technical Indicators

• Hourly MACD: The MACD is now gaining pace in the bearish zone.
• Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 level.
• Major Support Levels: $87,500, followed by $88,000.
• Major Resistance Levels: $86,500 and $86,000.