Bitcoin price corrects gains below the USD 95,000 support. BTC traded close to the USD 90,000 level and is currently consolidating near USD 92,500.
- Bitcoin started a downward correction below the $95,000 zone.
- The price is trading below $94,500 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $93,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rise again if it breaks the $93,500 resistance zone.
Bitcoin price corrects gains
Bitcoin price struggled to extend gains and started a downward correction below the USD 97,500 level. BTC fell below the USD 96,000 and USD 95,000 levels. It even fell below $92,000.
A low was formed at $90,736 and the price is now rising. There was a move above the $91,800 resistance level. The price crossed the 23.6% Fib retracement level of the downward move from the $98,880 swing high to the $90,736 low.
Bitcoin price is now trading below $95,000 and the 100 Hourly Simple Moving Average. On the upside, the price could encounter resistance around the $93,500 level. A connecting bearish trendline is also forming with resistance at $93,500 on the hourly chart of the BTC/USD pair.
The first major resistance is near the $94,800 level. It is close to the 50% Fib retracement level of the downward move from the $98,880 swing high to the $90,736 low.
A clear move above the USD 94,800 resistance could push the price higher. The next major resistance could be at USD 95,750. A close above the resistance at $95,750 could lead to more gains. In the said case, the price could rise and test the USD 97,500 resistance level. Any further gains could send the price towards the $98,000 level.
Another drop in BTC?
If Bitcoin fails to rise above the USD 93,500 resistance zone, it could trigger another downside correction. The immediate downside support is near the $91,800 level.
The first major support is near the $90,500 level. The next support is now near the $90,000 zone. Any further losses could send the price towards the USD 88,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 91,800, followed by USD 90,500.
Major resistance levels – $93,500 and $94,750.
