Bitcoin has fallen below a key Fibonacci level, but a recent Golden Cross signals potential for a rebound.
Bitcoin (BTC) has experienced a 2.3% drop in the last 24 hours, currently trading at $90,230, with the price fluctuating between $89,623.50 and $94,177.16 during this period. The premier crypto asset has shown a 3.5% decline over the past week. Additionally, Bitcoin’s 30-day performance shows a 14.1% drop, and its one-year performance remains negative, with an 8.0% decrease.
Given the recent price action and the broader market sentiment, Bitcoin is facing key resistance around the $94,000 mark, while the $89,600 level could serve as immediate support.
The market’s reaction to the Fed’s recent interest rate cut suggests that investor sentiment still remains cautious, with Bitcoin and other cryptos struggling to gain traction despite the favorable macroeconomic policy. As Bitcoin continues to trade within this range, it remains to be seen whether it can find support or if it will face further upward pressure.
Will Bitcoin Find Support?
Bitcoin is currently testing key Fibonacci retracement levels that earlier provided support and resistance zones. The price has recently retraced below the 0.236 level at $90,959.88, which acted as immediate support.
Notably, the 0.382 level at $88,969.23 serves as the next potential support. A failure to maintain above these levels could push Bitcoin further down, with the 0.5 Fibonacci level around $87,363.58 acting as the next critical support.
Further, the Stochastic RSI reading of 86.94 indicates that Bitcoin is losing momentum, suggesting a possible cooling off or consolidation before any significant upward movement.
Should Bitcoin close below the 0.236 level, the next major support zone lies around $85,757.92 (0.618 level). On the flip side, a close above the 0.236 level could push Bitcoin toward the higher resistance above $94,000.
Bitcoin Flushes Another Golden Cross
Elsewhere, analyst Merlijn The Trader highlights that Bitcoin has just flashed another Golden Cross, marking the fifth occurrence of this signal. In his analysis, he points out that the previous four Golden Crosses have resulted in explosive price increases, with Bitcoin seeing significant pumps of 87%, 47%, 78%, and 33%, respectively.
The current setup, according to The Trader, is “louder than ever,” and he believes the breakout play is now obvious. He suggests that while the crowd may be in disbelief, this technical signal is a strong indicator of potential further upside for Bitcoin, targeting levels above $170,000. A run to $170,000 from the current $90,230 would see BTC surge by approximately 88.3%.