Bitcoin Weakens Near $90K – A Pullback Seems Inevitable

Key Points:

• Decreasing volume and momentum suggest a pullback to $85,039.
• BTC faces resistance at $94,236.62 and support at $88,747.1.

Bitcoin shows signs of a bearish trend. Volume and momentum are decreasing, suggesting an impending correction. The RSI is neutral, and MACD indicates bearish divergence. A pullback to $85,087.43 is expected.

Bitcoin (BTC) is flirting with a bearish trend, and the data doesn’t lie. As much as we’d like to see our beloved asset keep climbing, the signs point in the opposite direction.

The volume is fading, the momentum is slowing, and the technicals are flashing caution. This isn’t the end of BTC’s bull run, which is far from it, but we’re due for a correction, which will come sooner than many expect.

Key Observations from the Chart

The chart tells a story of hesitation and resistance. BTC recently tested the $90,000 level but struggled to maintain it, with a pullback to current support at $88,747.1. The current resistance is now at $94,236.62, with BTC facing strong selling pressure at this level.

Volume has faded, and momentum indicators are neutral to bearish:

• Relative Strength Index (RSI): Values across timeframes (7, 14, and 25) are in the low-to-mid 40s, indicating a neutral market. There is no clear buying or selling pressure.
• MACD: Crossed below the signal line, further suggesting a bearish divergence that points to slowing momentum.
• Bollinger Bands: Bitcoin’s price is above the lower Bollinger Band but below the middle and upper bands, reflecting bearish pressure without a sharp downward movement.

The multi-EMA setup shows Bitcoin trading above several key EMAs, including $85,471.09, indicating that Bitcoin is still in an overall uptrend but potentially stretched. The Supertrend indicator is currently at $84,150.58, maintaining a green long-term signal but indicating that a short-term dip to test these levels is likely.

What to Expect

Let’s be clear: this isn’t a crash; it’s just a correction. Bitcoin has enjoyed a strong rally, but the market now needs a breather. Expect a pullback toward the $85,087.43 support zone, which could provide a more stable base for future growth. The correction is part of Bitcoin’s normal market cycle, shaking out weaker hands and building a stronger foundation for the next move upward.

Trade Strategy Recommendations

For now, patience is your best ally. Avoid FOMO-driven entries at these high levels, and resist the urge to buy during this potential pullback. Instead, consider waiting for Bitcoin to settle around $85,087.43 before entering a long position.

For those looking to take advantage of this bearish trend, the current price around $87,870.27 offers an entry point for a short position. A target at $85,087.43 with a stop-loss at $90,299.472 could provide a 3% potential profit. Remember, discipline is key, let the market come to you.

Long-Term Outlook

Zooming out into the larger picture, any short-term correction aside, long-term indicators scream one thing loud and clear: Bitcoin’s upward journey is intact. Why? Well, let’s take a look:

Supertrend Indicator: Long-Term Bullish Momentum

The Supertrend has firmly flipped green at $84,150.58, which means that the bullish sentiment of Bitcoin is here to stay. As long as Bitcoin stays above this mark, the long-term outlook remains bullish, regardless of how volatile the price action might be in the near term.

Exponential Moving Averages (EMAs): Riding on a Strong Uptrend

Currently, the price of Bitcoin is comfortably trading above the following key EMAs:

• 34-period EMA: $85,471.09
• 89-period EMA: $79,227.11
• 269-period EMA: $71,529.67

In the past, as long as Bitcoin price action stays above the 100- and 200-day EMAs, it remains in a bullish cycle. What this positioning does is hint at upward momentum, with also acting as a strong cushion against any short-term volatility.

Accumulation Support Levels: Prime Zones for Strategic Investors

Immediate Support: $88,747.1 — This immediate support level has shown resilience, with buyers stepping in to defend this level. If Bitcoin pulls back to this level, long-term investors could find a strategic entry point, leveraging this dip as an opportunity for accumulation.

The next big support is $85,087.43: Should Bitcoin correct further, the next support will surely be a strong base for recovery. This zone is an ideal target for buyers who know where the best bargain can be sought in the midst of weakness.

Long-term Stability: Sustaining above $85,000-a level that will provide critical psychological support-cements Bitcoin’s base and thus reinstates the market’s confidence while setting up a floor for future gains.

Relative Strength Index (RSI): Preparing for a Rebound

The RSI values are converging to lower, neutral levels, with:

• RSI 7: 40.06
• RSI 14: 42.56
• RSI 25: 46.79

Knowing full well that Bitcoin usually sees strong buying interest any time its RSI trades towards 40 and below, recorded price rebounds have always followed. To the long-term investor, these lower RSI levels mean it’s time to buy into weakness as Bitcoin positions for its next rally.

Bollinger Bands: The Volatility Squeeze and Market Cycles

Bitcoin currently fluctuates in price between the lower and middle Bollinger Bands, suggesting a squeeze in volatility. The thereof usually points toward a higher volatility phase afterward. However, given Bitcoin’s long-term bullish trend, any eventual dip toward the lower band is very likely a coiling phase prior to Bitcoin’s resumption of its upward push.

MACD and building bullish momentum-the next crossover?

The MACD has recently crossed below the signal line, which is usually a bearish signal. However, during greater Bitcoin cycles, those bearish signals do not last that long. As soon as Bitcoin is stabilizing around key support zones, the MACD can reset, all the time setting up the perfect scenario for the next bullish crossover.

Final Note

Remember, the market rewards discipline, and when the next opportunity arises, you’ll be ready to seize it. Stay sharp, stay steady, and let the market come to you. The best trades are worth the wait.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.