Key Takeaways:
– Bitcoin witnessed a short-term correction from an all-time high of $93,450.
– The cryptocurrency is now consolidating above $87,000, indicating a possible surge soon.
– Resistance at the $90,000 mark is influencing the trend.
– If the price remains above $87,000, a fresh increase might be witnessed.
– Failure to rise above $90,000 could lead to a downside correction.
Bitcoin’s Recent Downward Trend
After hitting an all-time high at $93,435, Bitcoin experienced a downturn. The foremost cryptocurrency slipped below the $90,000 level and even dipped beneath $88,000, marking a temporary low at $86,621. Presently, the currency seems to be consolidating, slowly trending upwards. Bitcoin is trading at the vicinity of the $87,000 mark and the 100 hourly Simple moving average.
Potential Resistance on the Way Up
As Bitcoin aims to rise above the fall, it could face resistance near the $90,000 level. This resistance is shaped by a connecting bearish trend line identified on the hourly chart of the BTC/USD pair. This trend line is situated near the 50% Fibonacci retracement level of the downward trend from the recent high to the temporary low. The first significant hurdle is around the $90,850 mark. A definitive move above this level could possibly instigate more gains for the cryptocurrency.
The Future of Bitcoin
Looking ahead, another key resistance could be found around the $91,500 value. A closing above this point could stimulate further increase in Bitcoin’s price. This could see Bitcoin reaching and possibly exceeding its former all-time high, moving toward a new one at $95,000.
On the flip side, if Bitcoin fails to rise above the $90,000 mark, it could initiate another downward correction. The cryptocurrency has immediate support at the $87,150 mark, and if the trend continues downwards, the $86,500 mark may provide substantial support. If losses continue, Bitcoin could dip towards the $85,280 zone. Any further losses might see the price dropping toward the $82,500 level in the foreseeable future.
Trade Indicators
Bitcoin’s current trade indicators show the MACD is slowly losing momentum in the bearish zone while the Relative Strength Index (RSI) is now below the 80 level. Although Bitcoin has experienced a slight correction, market indicators and patterns suggest that another upsurge is possible, provided the price stays above the $87,000 zone.
In conclusion, Bitcoin’s price trajectory is largely dependent on surpassing the $90,000 resistance. If conquered, the cryptocurrency is set to attain new highs. However, failure to do so could see the asset entering another period of downward correction. Despite its volatility, Bitcoin remains a dynamic player in the cryptocurrency market, reminding investors and traders alike to remain vigilant for possible fluctuations.