Bitcoin remains above $84,000 but experiences resistance at $86,000. The asset’s price correction has exceeded 22% since January due to global trade issues. Analyst Daan Crypto identifies key resistance factors, including a downtrend line and the 200-day moving averages. The ultimate resistance is at $90,000-$91,000, critical for a bullish reversal.
In the last week of trading, Bitcoin (BTC) has been unable to break out, facing repeated rejections around the $86,000 mark. While no major pullback has occurred, the ongoing sideways price movements reflect significant investor uncertainty regarding Bitcoin’s trajectory. Analyst Daan Crypto has shared a technical analysis highlighting three major resistance factors hampering upward price momentum.
Since reaching a new all-time high in late January, Bitcoin has experienced a heavy correction, losing over 22% of its value due to international trade tariff crises. Nonetheless, a potential price rebound emerged in early April following a halt in new tariffs and the initiation of global negotiations. Currently, Bitcoin remains confined within a tight range of $84,000-$86,000.
According to Daan Crypto’s analysis, three significant resistance levels exist in this price area. The first is a diagonal downtrend line marked by consistent lower lows and lower highs, indicating the necessity for a decisive breakout to signal a potential trend reversal. Additionally, the 200-day Exponential Moving Average (EMA) and 200-day Simple Moving Average (MA) are crucial indicators, with the EMA responding quicker to recent price changes.
To escape the current consolidation, Bitcoin needs to surpass both the 200-day EMA and the 200-day MA to signify a potential recovery. Furthermore, an ultimate resistance zone between $90,000 and $91,000 poses a critical test for Bitcoin. This level previously acted as support during the bull market, and regaining this range could herald a return to bullish momentum. As of now, Bitcoin trades at $84,868, showing a minor daily gain of 0.13%, while the trading volume has decreased by 42.34% to $12.52 billion.
