Bitcoin Loses Ground—Falling Below $90k Sparks Panic

Key Highlights

Bitcoin price declined heavily and even traded below the $90,000 support.

BTC is now following a connecting bearish trend line with resistance at $91,600 on the 4-hour chart.

Ethereum price also declined and traded below the $2,500 support.

XRP dipped toward $2.00 before the bulls appeared.

Bitcoin Price Technical Analysis

Bitcoin price made a couple of attempts to settle above $100,000 against the US Dollar. However, BTC failed and started a fresh decline.

Looking at the 4-hour chart, the price gained bearish momentum after it broke the $95,000 support zone. There was a close below the $92,000 level, the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

The bears even pushed the price below the $90,000 mark. A low was formed at $86,736 and the price is now consolidating losses. On the upside, the price could face resistance near the $90,000 level.

The next key resistance is $91,500. There is also a connecting bearish trend line forming with resistance at $91,600 on the same chart. It is close to the 38.2% Fib retracement level of the downward move from the $99,502 swing high to the $86,736 low.

A successful close above $91,600 might start another steady increase. In the stated case, the price may perhaps rise toward the $93,000 level. Any more gains might call for a test of $95,000.

Immediate support is near the $87,200 level. The next key support sits at $86,650. A downside break below $86,650 might send Bitcoin toward the $85,000 support. Any more losses might send the price toward the $83,200 support zone.

Looking at Ethereum, there was a fresh bearish reaction and the bears pushed the price below the $2,500 support zone.

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Source: ACTIONFOREX