Bitcoin Price Recovery Faces Crucial Test at Major Resistance Zone

[Ben Graham]

Bitcoin price attempted to start a fresh increase but failed at $89,250. BTC is now consolidating below $89,000 and might react to the downside.

• Bitcoin started a recovery wave above the $86,800 zone.
• The price is trading above $87,000 and the 100 hourly Simple moving average.
• There is a key rising channel forming with support at $87,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it settles above the $89,500 zone.

Bitcoin Price Faces Resistance

Bitcoin price attempted a fresh recovery wave above $88,200 and $89,000. BTC tested the $89,250 resistance zone and struggled to continue higher.

The price is now consolidating gains below $89,000. There was a minor decline and it tested the 23.6% Fib retracement level of the upward move from the $84,421 swing low to the $89,238 high. However, the bulls are active above $87,500.

Bitcoin is now trading above $87,500 and the 100 hourly Simple moving average. There is also a key rising channel forming with support at $87,650 on the hourly chart of the BTC/USD pair.

If the bulls remain in action, the price could attempt more gains. Immediate resistance is near the $89,000 level. The first key resistance is near the $89,250 level. The next resistance could be $89,500. A close above the $89,500 resistance might send the price further higher. In the stated case, the price could rise and test the $90,500 resistance. Any more gains might send the price toward the $92,000 level. The next barrier for the bulls could be $92,650 and $93,200.

Another Decline In BTC?

If Bitcoin fails to rise above the $89,000 resistance zone, it could start another decline. Immediate support is near the $87,500 level. The first major support is near the $87,000 level.

The next support is now near the $86,800 zone and the 50% Fib retracement level of the upward move from the $84,421 swing low to the $89,238 high. Any more losses might send the price toward the $85,500 support in the near term. The main support sits at $84,400, below which BTC might accelerate lower in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $87,500, followed by $86,800.

Major Resistance Levels – $89,000 and $89,500.