Bitcoin Price Dips Sharply Below $90K, Must Stay Above $86K to Avoid More Losses

Bitcoin price failed to stay above the $95,500 level and started a fresh decline. BTC declined heavily below the $93,200 and $92,200 support levels.

Bitcoin price started a fresh decline after failing to gain any traction above the $95.500 level. BTC declined sharply and broke the critical support at $93,200.

Bitcoin Price Drops Sharply

Bitcoin price is facing difficulties in rising above the $95,500 resistance and started a new decline. The price dropped below the $92,200 support zone.

The next key support was at $90,000, which sellers pushed through. The price tested the $86,000 zone and a low was formed at $85,999.

The bears encountered strong support at the $86,000 level, which stalled further declines. The price is now consolidating losses and is trading above the $88,500 level. It is also above the 23.6% Fib retracement level of the downward move from the $96,482 swing high to the $86,000 low.

Next Resistance For BTC

Bitcoin price is trading in the triangle structure on the 4-hour chart. The triangle is forming with resistance at $89,000.

The first major resistance is at $90,000, which could be a barrier. The next key resistance is at $91,250 or the 50% Fib retracement level of the downward move from the $96,482 swing high to the $86,000 low.

A break above the $91,250 resistance might clear the way for more gains. In that case, the price could rise and test the $93,500 resistance level. Any further gains might send the price toward the $95,000 level or even $96,400.

More Downside Possible

If Bitcoin fails to rise above the $90,000 resistance zone and the triangle, it could start another decline.

The first major support on the downside is at $88,000, closely followed by the 100-hour SMA. The next support is now visible at the $87,250 level.

The main support zone is still at $86,000. If the bears break the $86,000 support, the price could decline toward the $85,000 support level.