- Bitcoin is at $96,935 but faces strong resistance near $108,812, which limits its rise.
- If BTC falls below $91,200, it may decline to $89,000 or even lower as pressure builds.
- Bulls need to hold $91K, or BTC could enter a deeper correction in the coming days.
Bitcoin is trading at $96,935, marking a 0.47% increase in the past week. The asset has remained within a tight consolidation after reaching a peak of $108,812, where it faced resistance. However, a potential retracement looms, with Fibonacci levels hinting at areas where price corrections could unfold. The interplay between technical indicators and historical price action suggests that BTC may see increased volatility in the coming weeks.
Source: Tradingview
The weekly BTC/USD chart outlines a bullish impulse that led to a +108.11% rally from its previous bottom. However, the asset has since entered a corrective phase, struggling to maintain its bullish momentum. The 38.2% Fibonacci retracement level at $98,493 is currently acting as minor resistance, while the 50% retracement at $90,109 stands as a psychological level and a pivot.
A break below this could send Bitcoin toward $81,726, which aligns with the 61.8% Fibonacci retracement, commonly referred to as the “golden pocket” for deeper pullbacks. Should bearish momentum extend further, $69,791, aligning with the 78.6% retracement, could serve as a demand zone before Bitcoin tests the full retracement level at $54,587.
Related: Bitcoin’s (BTC) Key Resistance: Is a Major Breakout Coming?
Bitcoin Risks Falling Below $91,200 With Support at $89K
If Bitcoin loses its grip on $91,200, on a weekly support level, it could trigger a decline toward $89,000. This would mean that those who entered Bitcoin positions post-January 2025 may experience losses, while buyers from December 2024 will still retain profits, albeit with shrinking gains. The price structure remains at a juncture where traders must closely monitor inflection points to gauge the next move.
Momentum indicators paint a mixed picture. The MACD stands at -426, with the signal line at 8,700, while the histogram sits at 9,126. This suggests a weakening bullish trend, hinting at a cooldown period or an extended consolidation phase. However, the positive histogram reading still implies that sellers have yet to gain full control.
Meanwhile, the RSI is at 61.58, with its moving average at 69.05, placing BTC in moderately bullish territory. Despite this, the RSI is shifting away from overbought conditions, signaling that a drop toward neutral levels may be imminent. A decline below 50 would confirm bearish strength taking over the market.
BTC Needs to Hold $91K to Retest $108,812 High
The token’s trajectory now hinges on its ability to hold the $91,200 support. If bulls manage to defend this level, BTC could resume its trend and make another attempt at reclaiming $108,812. However, failure to maintain this support would likely result in a correction toward $89K and potentially reach $81,726.
