Bitcoin Encounters Resistance at $86,000 Amidst Ongoing Price Correction

Bitcoin is facing rejection at the $86,000 mark, experiencing no significant breakout and exhibiting investor uncertainty. Analyst Daan Crypto highlights three resistance factors impacting price movement, including a diagonal downtrend line and two key moving averages. Bitcoin has lost over 22% since January, largely due to trade tariff crises. A successful breakout above $90,000-$91,000 is critical for resuming its bullish trend.

Bitcoin (BTC) has encountered persistent rejection in the $86,000 region over the past week, failing to achieve any substantial price breakout. Although the market has avoided major pullbacks, the ongoing sideways movement underscores significant investor uncertainty regarding Bitcoin’s future trajectory.

Market analyst Daan Crypto has conducted a thorough technical analysis, identifying critical resistance levels hindering upward price movement. Since reaching a peak in late January, Bitcoin has undergone a significant correction, losing over 22% of its value. This decline has primarily been attributed to international trade tariff crises leading investors towards safer assets.

In early April, a temporary rebound was observed as negotiations to halt new tariffs progressed. However, Bitcoin is currently struggling to escape the $84,000-$86,000 consolidation range. Daan Crypto has pinpointed three main resistance factors that impact this price zone, beginning with a diagonal downtrend line formed by continual lower lows and lower highs over the last three months. An effective breakout above this resistance is crucial for any bullish reversal.

Additional vital indicators are the 200-day Exponential Moving Average (EMA) and the 200-day Simple Moving Average (MA). The 200-day EMA, which gives greater emphasis to recent prices, is crucial for spotting potential long-term trend changes, while the 200-day MA serves as a classic long-term indicator. Bitcoin must exceed both metrics to disrupt its current consolidation and potentially recover fully.

Furthermore, according to Daan Crypto, the crucial test for Bitcoin’s price reversal lies within the $90,000-$91,000 range, which acted as significant support during earlier bull phases. Successfully reclaiming this level would re-establish Bitcoin in the bullish trading zone, indicating a probable resumption of the broader bull market. As of the latest update, Bitcoin is trading at $84,868, marking a modest gain of 0.13%. The daily trading volume has decreased by 42.34%, standing at $12.52 billion.