Bitcoin Hovers at $89K as Resistance Zone Caps Short-Term Upside

Bitcoin makes a tentative move as the cryptocurrency approaches a level of support and resistance in the market. Analysts indicate that a bullish trend is in place, but the current situation is poised for a corrective move that may take some time.

At the time of writing, Bitcoin (BTC) is trading at $89,849, with a 24-hour trading volume of $81.41 billion and a market cap of $1.80 trillion. BTC gained 0.12% over the last 24 hours, reflecting modest upward movement amid market caution. Price data is sourced from CoinMarketCap.

Source: CoinMarketCap

Bitcoin Faces Critical Support And Resistance

Noting this, crypto analyst More Crypto Online reported that Bitcoin was close to the B-wave support area around $82,500 and $86,908 on Wednesday. This region is significant regarding what the analyst refers to as the “white scenario.”

For a successful transition in this case, the move might target approximately $106,000, marking a 100% extension of the C-wave. This kind of scenario needs clear and strong confirmation and buyer follow-through.

Source: X

Despite the potential for such a scenario, however, the “orange scenario” is the more probable pattern at the moment. This corrective pattern, identified as such by More Crypto Online, began developing back in November. It is quite unusual for corrective rallies to take such a shape.

The next major level to keep an eye out for on the daily chart is the orange B wave resistance area, ranging from $91,161 to $95,552. It will be important to see how the BTC price responds to this area of resistance in the upcoming days to see if the current pattern will remain dominant or if the white scenario will begin to take hold.

Also Read | Bitcoin Stalls in High-Risk Dead Zone After Trend Break

Bitcoin Faces Weak Momentum Trend

The RSI for Bitcoin in the weekly chart is approximately 41, which is below 50. This shows that there is weak momentum, but it is not oversold. BTC is below the short-term moving average ribbon.

The 20-50 SMA range of $100,600-$101,200 is strong resistance. It is above major support at $87,300. It has lower support at $77,700 and $57,800.

Source: TradingView

As for the momentum, the MACD is bearish, with the MACD line close to -1,160 and the signal line at -385. Red bars are also prominent, indicating that the sellers are in control of the trend. Until then, the trend is expected to be sideways or downwards.

Overall, Bitcoin is at a crossroads and is being supported above an important level, as resistance determines what happens next. Investors will be watching to see if a continuation of the correction or a strong move upwards begins.

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