Bitcoin’s price recovery is at risk, with $86,000 acting as resistance. If it drops below $83,000, a decline toward $75,000 is likely. Key indicators show bearish alignment, emphasising caution for bulls. A recovery rally requires a close above $86,000.
Bitcoin’s recovery has met resistance at the $86,000 mark, suggesting a potential bearish shift in market momentum. Key averages are nearing a bearish crossover, notably the 50- and 100-hour Simple Moving Averages (SMA), which could lead to sellers taking control of the market. A drop below $83,000 may trigger a downward price movement towards $75,000, while a close above $86,000 would support an ongoing recovery rally.
Currently, the bullish trend struggles to maintain gains above $86,000, as significant resistance from the supply zone has become apparent. The alignment of the 50, 100, and 200-hour SMAs reflects a bearish outlook, as the shorter ones are set to dip below the longer one. The aforementioned downturn in the 50- and 100-day SMAs further emphasises the need for caution from bulls in this volatile market.
Additionally, the daily MACD histogram indicates waning upward momentum, halting the trend of higher bars above the zero line. This loss of momentum reinforces concerns regarding a potential bearish shift if Bitcoin fails to sustain above key support levels. The market sentiment might shift dramatically should prices fall beneath $83,000, aligning with historical lows around $75,000, necessitating vigilance for traders and investors alike.
