Bitcoin’s price was unable to break through the $90,000 level and has since given up all its recent gains. BTC is now stabilizing after the drop and could face difficulty maintaining support above $86,500.
After attempting a recovery, Bitcoin failed to clear the $90,000 resistance. It is currently trading below $88,000 and the 100-hour Simple Moving Average. A declining channel is taking shape on the hourly chart for BTC/USD, with resistance near $87,500. A break below $86,500 could lead to further declines.
Bitcoin Sees Sharp Decline
Following an attempt to rise above $88,500, Bitcoin pushed past $89,000 but met strong selling pressure near $90,000. After peaking at $90,298, the price reversed sharply, falling below $89,000 and then $88,000. A low was established at $86,700, and the price is now consolidating below the 23.6% Fibonacci retracement level of the drop from $90,298 to $86,700.
Bitcoin remains below $88,000 and the 100-hour SMA. If it holds above $86,500, another recovery attempt could follow. Immediate resistance lies near $87,500, aligned with the channel resistance. The next key resistance is around $88,000, followed by $88,500, which coincides with the 50% Fib retracement level of the recent decline.
A sustained move above $88,500 could pave the way for a test of $89,200, with further targets at $90,000, $90,500, and $91,200.
Risk of Further Losses
If Bitcoin fails to overcome the $88,500 resistance, it could resume its downward move. Initial support is near $86,500, with stronger support at $86,000. A break below that could test $85,500, and potentially $85,000. The main support level sits at $83,500; a drop below this could trigger a steeper decline.
Technical Indicators
– Hourly MACD: Gaining momentum in bearish territory.
– Hourly RSI: Below the 50 level, indicating bearish momentum.
– Key Support Levels: $86,500, followed by $86,000.
– Key Resistance Levels: $87,500, followed by $88,000.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Recent Price Drop
BeginnerLevel Questions
Q Why did Bitcoins price drop so suddenly
A Bitcoins price can drop due to a combination of factors including large investors selling negative news broader economic uncertainty or simply a natural market correction after a period of gains
Q What does wiping out recent gains mean
A It means the price has fallen back to a level near where it was before it started its last significant rise effectively erasing the profit or increase in value it had achieved over that period
Q Is Bitcoin crashing Should I panic
A Sharp price drops are common in cryptocurrency While its a significant decline it doesnt necessarily mean a permanent crash Panic selling often leads to losses its better to assess your investment strategy calmly
Q How low could the price go
A No one can predict the exact bottom Prices are set by global market sentiment Analysts look at previous support levels but theres always risk of further decline
Q I just bought Bitcoin did I make a mistake
A Not necessarily Cryptocurrency investing is typically for the long term and involves high risk Shortterm drops are expected The mistake would be investing money you cant afford to lose or expecting guaranteed quick profits
Intermediate Advanced Questions
Q What are the key technical indicators suggesting right now
A Indicators like the Relative Strength Index may show Bitcoin is in oversold territory which could precede a bounce However breaking below key moving averages and support levels often signals bearish momentum and risk of more decline
Q Are there specific onchain metrics pointing to trouble
A Analysts watch metrics like exchange inflows the MVRV ratio and miner outflow Recent data may show increased movement of coins to exchanges hinting at holders preparing to sell
Q How does broader macroeconomics affect this drop
A Bitcoin is increasingly correlated with risk assets like tech stocks Factors like high interest rates inflation fears and strong US dollar can pull money out of