Bitcoin Price Rejected at $88K — Is a Reversal Coming?

Bitcoin Price Action Turns Cautious Near $89K — What the Charts Say

Bitcoin Price – After briefly touching $88,874, Bitcoin (BTC) is now showing signs of weakness, with price action cooling off as bulls face resistance at a crucial technical level. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was rejected at the 200-day simple moving average (SMA), currently acting as a strong barrier to further upside momentum.

The latest rally had sparked hopes for a “gold-style breakout”, with gold reaching new all-time highs earlier this month. However, Bitcoin has failed to mirror this move, suggesting a potential reversal could be in progress.

Traders highlight critical levels

Well-known analyst Daan Crypto Trades noted in a post on X that BTC managed to break above the 200-day exponential moving average (EMA) and a key diagonal resistance, but quickly saw a sharp rejection from the 200-day SMA.

“The fun won’t start until we get daily closes above the previous range low at ~$90K,” he added, emphasizing that $85,000 remains an important support level to hold in the short term.

Fellow trader Roman also warned of an impending pullback, citing the stochastic RSI entering “overbought” territory. Historically, such conditions have led to 10–15% corrections, especially when paired with downward pressure from traditional markets like the S&P 500.

Macroeconomic signals and on-chain data spark debate

Despite bearish sentiment, some analysts remain optimistic. Trader Cas Abbe argued that the Bitcoin reversal has already begun, supported by macroeconomic factors such as a weakening US dollar, record global M2 money supply, and a Coinbase premium indicating renewed whale accumulation.

Abbe believes that the $74K–$75K range marked the bottom, and that both Bitcoin and altcoins could enter a sustained rally — but others remain cautious, watching closely for confirmation above key resistance levels.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.