Bitcoin price started an upside correction from the $77,000 zone.
BTC is now facing an uphill battle near the $87,000 and $90,000 levels.
Bitcoin Price Could Dip Again?
In the past few weeks, Bitcoin price saw a fresh decline below the $90,000 zone. BTC traded below the $88,000 and $85,000 levels to enter a bearish zone. The bears even pushed the price below the $80,000 support zone.
Finally, the bulls appeared near $77,000. A low was formed at $77,041 and the price recently started a recovery wave. There was a move above the $80,000 resistance zone, but it remained well below the 50-day simple moving average (blue).
Bitcoin price is up over 6% from the lows and there was a move above the $82,000 resistance. The price traded above the 50% Fib retracement level of the downward move from the $92,997 swing high to the $77,041 low.
However, BTC is now approaching a couple of major hurdles and recovery could soon fade. On the upside, immediate resistance is near the $86,800 level. It coincides with the 61.8% Fib retracement level of the downward move from the $92,997 swing high to the $77,041 low.
The first major resistance is seen near the $89,000 zone. There is also a key bearish trend line forming with resistance at $89,200 on the daily chart. The main pivot level could be $90,000.
A close above the $90,000 resistance might spark more upsides. The next stop BTC price could be the $92,000 level and the 50-day simple moving average (blue), above which the price could attempt to clear the $93,000 level.
A daily close above the $93,000 resistance zone could set the pace for a move toward the next key resistance at $96,750 and the 1.236 Fib extension level of the downward move from the $92,997 swing high to the $77,041 low. Any more gains might call for a test of $98,000 or even $100,000 in the coming days.
Another Drop In BTC?
Conversely, Bitcoin price might struggle to clear $87,000 or $89,000 and start another decline. Immediate support on the downside is near the $83,500 level.
The first major support is near the $82,000 level. A downside break and close below the $82,000 support might spark more losses and the price could accelerate lower. In the stated case, Bitcoin could test the $80,000 support. The next key support could be $77,000, below which BTC might slide toward the $73,500 support.
Overall, Bitcoin is recovering and facing many hurdles on the upside, starting with $89,000. A failure to settle above $89,000 or $90,000 could spark another major decline.