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Bitcoin Consolidation Alert: What’s Next for BTC After Sharp Pullback?
Bitcoin (BTC) recently attempted a fresh recovery wave but failed to sustain momentum near $89,500, leaving the flagship cryptocurrency struggling below $86,500. Traders are now closely watching support and resistance levels as BTC consolidates losses following its sharp pullback.
BTC Price Faces Resistance Near $87K
Bitcoin made an early push above $88,000 and $88,500, briefly testing the $89,500 resistance zone. However, sellers quickly regained control, triggering a sharp decline below $88,000. On the hourly chart of BTC/USD, the cryptocurrency broke below a bullish trend line that previously provided support at $87,250.
The price even spiked briefly below $85,000, but the bulls remained active around $84,500, forming a temporary low at $84,421. Currently, BTC is consolidating below the 23.6% Fibonacci retracement level of the downward move from the $89,437 swing high to the $84,421 low, indicating that the market is still trying to find footing before the next significant move.
Key Resistance Levels to Watch
Bitcoin is now trading below $87,000 and the 100-hourly simple moving average (SMA). Analysts note that if bulls regain momentum, BTC could attempt further gains. Immediate resistance is near $86,600, followed closely by the $87,000 level, which also coincides with the 50% Fibonacci retracement of the recent decline.
If the bulls manage to push BTC above $88,000, the cryptocurrency may target $88,800, with a further rally potentially testing $89,500. The next barriers for bulls lie at $90,000 and $90,500, key psychological levels that traders are monitoring for a breakout scenario.
Potential Downside Risks
If Bitcoin fails to break the $87,000 resistance zone, it could resume its downward trend. Immediate support lies at $85,000, followed by a major support level near $84,500.
Further losses could push BTC toward the $83,200 zone, with additional downside potentially testing $82,500 in the near term. Analysts warn that a breach below the critical $80,500 support could accelerate the decline, opening the door for deeper losses.
Technical Indicators Suggest Bearish Pressure
Technical indicators currently point to caution for bullish traders.
- Hourly MACD: Momentum is gaining pace in the bearish zone, signaling that sellers currently dominate short-term price action.
- Hourly RSI (Relative Strength Index): The RSI is below 50, indicating weakness and lack of bullish momentum.
Major support levels to watch are $85,000 and $84,500, while key resistance levels remain at $87,000 and $88,000.
Market Sentiment and Next Steps
Bitcoin’s inability to sustain gains near $89,500 reflects ongoing market uncertainty. While a bounce from the $84,500-$85,000 support zone could provide temporary relief, broader upward movement remains constrained until BTC decisively breaks above $88,000.
Traders should remain vigilant for both bullish and bearish signals: a successful push above $88,800-$89,500 may revive optimism, whereas a breakdown below $82,500 could trigger further selling pressure. The next few trading sessions are critical as Bitcoin navigates these key technical levels.
BTC in Consolidation Mode
Bitcoin is currently trapped between resistance at $87,000-$88,000 and support at $84,500-$85,000, creating a tense consolidation phase. Technical indicators lean bearish, suggesting that unless bullish momentum returns, BTC may continue to face downward pressure in the near term. Traders will be watching these levels closely to gauge the cryptocurrency’s next major move.
