Bitcoin Risks 10%-15% Drop After Rejection Near $89,000

Bitcoin is facing an “overbought” stochastic RSI reading while the 200-day exponential moving average is pushing prices lower after hitting a new April high.

$BTC traders see BTC price starting to reverse as classic resistance stalls upside momentum.

200-day moving average keeps BTC price low

Data from Cointelegraph Markets Pro and TradingView shows BTC/USD cooling off after hitting a new April high of $88,874.

After finding strength earlier in the week, Bitcoin has sparked hopes of a gold-like move as the yellow metal hits multiple all-time highs.

Those highs continued on April 22, while BTC price conversely saw rejection at the 200-day simple moving average (SMA).

“Interesting points. Broke above the 200-day EMA (blue) and the resistance diagonal. So far, seen strong rejection from the 200-day EMA (purple),” trader Daan Crypto Trades said in a post on X alongside the explanatory chart.

“The fun won’t start until we have some daily closes back above the previous low at ~$90K. I think it’s important to hold ~$85K below that.”

The 200-day SMA has often formed support during Bitcoin’s bull markets, but was lost in March when the cryptocurrency faced selling pressure as the US trade war began.