Bitcoin has faced persistent resistance around the $86,000 mark, leading to a significant sideways movement as investor uncertainty prevails. Technical analysis reveals three main resistance barriers including a diagonal downtrend line, the 200-day EMA, and the 200-day MA. The ultimate test for Bitcoin’s potential price recovery lies in reclaiming the $90,000-$91,000 zone, which could signal a return to bullish trading conditions.
In the past week, Bitcoin (BTC) struggled to break through significant price levels, facing persistent rejections near $86,000. While the market avoided major downward shifts, the ongoing sideways movement reflects considerable investor uncertainty. Daan Crypto, a well-known market analyst, has shed light on the technical barriers hindering Bitcoin’s upward momentum.
Bitcoin has encountered multiple resistance points since its all-time high in January, losing over 22% due to international trade tariff crises that prompted investors to prefer safer assets. Although a pause in tariff introductions and renewed global negotiations led to a brief price rebound in April, Bitcoin has been unable to surpass the tight $84,000-$86,000 consolidation range.
Daan Crypto’s technical analysis highlights three main resistance factors: a diagonal downtrend line, the 200-day Exponential Moving Average (EMA), and the 200-day Simple Moving Average (MA). The diagonal resistance stems from the lower lows and highs observed over the last three months, necessitating a convincing breakout for any trend reversal.
The 200-day EMA and MA both track price averages over the past 200 days, with the EMA responding more swiftly to recent price fluctuations. To escape the current consolidation phase, Bitcoin must achieve levels above these critical indicators to potentially re-enter an upward price trajectory.
Daan Crypto indicates that Bitcoin’s ultimate challenge lies at the $90,000-$91,000 range, previously a significant support level during the bull market. Successfully reclaiming this range would signal a return to bullish trends, potentially activating the broader bull market once again. As of now, Bitcoin trades at $84,868, with a modest daily gain of 0.13% and trading volumes dropping by 42.34% to approximately $12.52 billion.
