Bitcoin Price Faces Rejection at $89K; Analysts Predict Potential Correction

Bitcoin faces resistance near $89,000, with traders noting a potential 10-15% price dip due to rejection at the 200-day SMA. The coin has recovered from lows under $75,000, but caution prevails in light of overbought RSI conditions. Some traders believe a market reversal has begun, linked to macroeconomic factors. Key levels to watch include sustaining prices above $85,000 and closing above $90,000 for further bullish momentum.

Bitcoin (BTC) is experiencing a price reversal after a key rejection near $89,000, signalling potential price corrections. Recent data shows BTC/USD cooling from an April high of $88,874, with market analysts observing a significant resistance at the 200-day simple moving average (SMA). Trader Daan Crypto Trades noted the rejection at this key level, stressing the importance of closing above the previous range low at approximately $90,000 and maintaining a support level around $85,000.

The significance of the 200-day SMA is traditionally as a support indicator in bull markets. However, its loss in March coincided with increased selling pressure due to the US trade war, resulting in five-month lows below $75,000 for Bitcoin. While there has been a recovery, traders remain cautious; some are suggesting a potential correction of 10-15% based on the stochastic relative strength index (RSI) indicating overbought conditions.