Bitcoin Faces Potential 10-15% Price Correction After Key Resistance

Bitcoin (BTC) traders expect a 10-15% price dip after failing to surpass $89K, encountering resistance at the 200-day SMA. Despite some bullish sentiment, overbought indicators and macroeconomic pressures suggest a correction may occur. Analysts are optimistic about long-term recovery despite short-term volatility, citing key support levels and market trends.

Bitcoin (BTC) traders are observing a potential price reversal as recent resistance near $89,000 halted bullish momentum. Data from Cointelegraph Markets Pro and TradingView indicate that BTC/USD has cooled after reaching a new high of $88,874 in April. Despite earlier gains, the cryptocurrency faced rejection at the critical 200-day simple moving average (SMA), which typically provides support during bull markets.

Traders have noted that Bitcoin’s performance peaked as it approached the 200-day SMA, leading to a sharp rejection. Analyst Daan Crypto Trades summarised this situation, indicating that Bitcoin needs to close above the previous low of approximately $90K for positive momentum to resume. Holding above the $85K level is regarded as crucial.

The 200-day SMA was lost amidst sell-side pressure from external factors, including the U.S. trade war, resulting in Bitcoin testing lows below $75,000. Despite a recent price rebound, traders are cautious, anticipating a potential 10-15% correction based on previous overbought stochastic relative strength index (RSI) signals. This trend suggests increasing market necessity for a downward price adjustment.

Market analysis highlights macroeconomic dynamics impacting Bitcoin prices, characterised by a weakening U.S. dollar and rising global M2 money supply. Trader Cas Abbe emphasised these factors in a dedicated thread, arguing that the current move isn’t merely a temporary “bull trap.” He cited whale accumulation and the re-emerging Coinbase premium as indicators of a sustained rally. Abbe concluded that the $74K-$75K level was likely the bottom for Bitcoin and anticipated recovery in the altcoin market. This article does not offer investment advice, and all trading decisions carry inherent risks.