Bitcoin price started a consolidation phase below $90,500. BTC is consolidating losses and might attempt a recovery wave if it clears $91,500.
Bitcoin started a minor recovery wave from the $87,200 level.
The price is trading below $90,500 and the 100 hourly Simple moving average.
There was a break above a short-term bearish trend line with resistance at $89,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might recover if it manages to settle above $90,500 and $91,500.
Bitcoin Price Eyes Recovery
Bitcoin price failed to stay above the $90,000 support and extended losses. BTC declined sharply below the $89,500 and $88,000 support levels.
The bears even pushed the price below $87,500. A low was formed at $87,200, and the price is now attempting a recovery wave. There was a move above the 23.6% Fib retracement level of the downward move from the $95,475 swing high to the $87,200 low.
Besides, there was a break above a short-term bearish trend line with resistance at $89,700 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $90,500 and the 100 hourly Simple moving average.
If the price remains stable above $89,000, it could attempt a fresh increase. Immediate resistance is near the $90,300 level. The first key resistance is near the $91,500 level since it is close to the 50% Fib retracement level of the downward move from the $95,475 swing high to the $87,200 low.
A close above the $91,500 resistance might send the price further higher. In the stated case, the price could rise and test the $92,300 resistance. Any more gains might send the price toward the $93,000 level. The next barrier for the bulls could be $95,000 and $95,500.
Another Drop In BTC?
If Bitcoin fails to rise above the $91,500 resistance zone, it could start another decline. Immediate support is near the $89,000 level. The first major support is near the $88,200 level.
The next support is now near the $87,500 zone. Any more losses might send the price toward the $86,500 support in the near term. The main support sits at $85,500, below which BTC might accelerate lower in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $89,000, followed by $88,200.
Major Resistance Levels – $90,300 and $91,500.
