Bitcoin experienced a downward movement earlier today but found support at the 200-bar moving average on the 4-hour chart, currently at $86,703. Sellers attempted to push below this level, yet buyer momentum persisted, keeping short-term control with buyers.
On the upside, resistance is identified at $89,113, marking the 38.2% retracement from the all-time high. A break above this level would indicate a bullish trend, with further resistance close to the psychological $90,000 and the 50% retracement at $92,978.
Buyer Struggle For Control
Following a 30% drop since January’s peak, buyers are striving to regain control, needing to reclaim the 38.2% retracement to suggest a reversal. Otherwise, the current rise may be seen as merely a correction in a larger downtrend.
The immediate technical scenario focuses on support at the 200-bar moving average and resistance at the 38.2% retracement. A decisive move beyond this range will likely dictate the future direction of BTCUSD.
What has already been laid out points to a back-and-forth struggle between buyers and sellers, where price retracement levels and moving averages define short-term market direction. Bitcoin’s recent attempt to push higher is facing hesitation near the 38.2% retracement, an area watched closely in technical analysis for signs of trend continuation or rejection. The failure to break through thus far suggests a market still weighed down by the broader correction that has been unfolding since the start of the year. However, support at the 200-bar moving average indicates that buyers remain active, preventing a sharper decline in the short term.
If price action maintains strength near current levels, attention will shift to whether buyers can drive Bitcoin above key retracement areas. Breaking beyond $89,113 would challenge recent selling pressure and could encourage a more extended recovery toward $90,000 and beyond. That, however, is dependent on whether sellers step back or hold firm at these higher price marks. Additional selling interest near the 50% retracement level at $92,978 remains a key obstacle to any sustained upside. Should that be tested, how price reacts will be telling—either a rejection leading to another downturn or momentum carrying forward.
Key Levels To Watch
Until then, traders must gauge how Bitcoin handles these levels in the coming days. A sustained move above resistance would place the advantage in the hands of the buyers, tilting sentiment back in their favour. Conversely, weakness below the moving average at $86,703 would highlight a lack of conviction, keeping the broader downward trend intact. In that scenario, sellers would likely regain the upper hand. The next few sessions will determine whether the current rebound maintains its strength or fades under renewed selling pressure.
