Bitcoin today broke the psychological support of $90K and is trading at $89,208 after shedding 3.62% in the last 14 hours. That means that "golden cross" formation
$BTC painted on the charts just a few days ago has now been invalidated.
More importantly, the king of crypto has broken below an ascending trendline that had been providing support since the December lows. That dotted white line on the chart below? It's now overhead resistance instead of a floor.
Price support, though, is not established by short-term momentum, but long-term analysis. The Fibonacci levels between the all-time highs and the minimum price reached in late November are a solid reference and have been respected throughout since then.
Bitcoin’s Average Directional Index, or ADX, sits at 30.5, almost 3 points below yesterday’s readings, showing that the bullish bounce is losing steam rapidly. ADX measures trend strength, regardless of direction, on a scale from 0 to 100, with reading above 25 confirming a trend is in place.
The Relative Strength Index, or RSI, is likewise measured on a 0 to 100 scale and gives a sense of momentum, with scores above 70 signally overbought and below 30 oversold. So, with the ADX at 30.5 combined with an RSI of 41.7, the charts are placing Bitcoin in bearish territory without being oversold. The setup would suggest to traders there's room for further downside before any meaningful bounce.
The next major support zone lies near the $80,600 Fibonacci level visible on the daily chart. That's roughly 10% below current prices.
Exponential moving averages, or EMAs, help traders identify trends by taking the average price of an asset over the short, medium, and long term. And Bitcoin’s 200-day EMA (average price of the last 200 days), which typically acts as a line in the sand for longer-term bulls, has already been breached.
When Bitcoin breaks below this level with a candle that has a big body and minimal wicks—exactly what we saw today—it typically signals more pain ahead before buyers step in.
Key levels:
Resistance
•$91,500 (immediate)
•$98,000 (strong)
Support
•$86,000 (immediate)
•$80,500 (Fibonacci level).
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