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Bitcoin price saw a short-term correction in the $93,450 area. BTC is currently consolidating gains near $87,000 and may attempt another increase in the near future.
- Bitcoin began a downward correction in the $93,450 area.
- The price is trading above $87,000 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) has a bearish trendline connected to it forming at resistance $90,000.
- If it stays above the $87,000 area, the pair could start a fresh increase.
Bitcoin price downward correction begins
Bitcoin price attempted to rise further above the $93,000 level. BTC hit a new all-time high at $93,435 and recently began a short-term downward correction.
It fell slightly below the $90,000 level. The price also fell below the $88,000 level. The low was made at $86,621 and the price is currently consolidating. It is slowly rising and is trading near the 23.6% Fib retracement level of the downward move from the $93,435 swing high to the $86,621 low.
Bitcoin price is currently trading above $87,000 and the 100-hour simple moving average. On the other hand, the price may face resistance near $90,000. On the hourly chart of the BTC/USD pair, there is also a connecting bearish trend line forming resistance at $90,000.
The trend line is close to the 50% Fib retracement level moving down from the $93,435 swing high to the $86,621 low. The first major resistance is near the $90,850 level. A clear break above the $90,850 resistance could push the price higher.
The next major resistance could be $91,500. A close above the $91,500 resistance could lead to further gains. If indicated, the price could move higher to test the resistance level of $93,450. Any more profits could push the price down towards the $95,000 resistance level.
Are there more downsides to BTC?
If Bitcoin fails to rise above the $90,000 resistance zone, a downward correction could begin. Immediate support for the downside is near the $87,150 level.
The first major support is near the $86,500 level. The next support is now near the $85,280 area. More losses could push the price towards the $82,500 support in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 80 level.
Key support levels – $87,150, $86,500.
Key resistance levels – $90,000 and $91,500.