Cryptocurrency analytics firm MakroVision has provided an update on Bitcoin’s recent price action, outlining ongoing weakness in the market and key levels to watch. Despite holding above a key Fibonacci level, Bitcoin has yet to stage a strong recovery.
Following a significant sell-off, Bitcoin continues to trade sideways, testing key support and resistance zones, according to the analyst firm. The lack of strong buying pressure raises concerns about whether a meaningful recovery is imminent or whether the bearish momentum will continue.
Although Bitcoin remains above the 0.5 Fibonacci level at $79,263, buyers have yet to make a strong move. The fact that the price remains below the descending trend line and key resistance levels suggests that a confirmed trend reversal is yet to occur.
MakroVision shared the key levels ahead of Bitcoin:
- $87,500-$89,900: This area represents the first major hurdle. A move above this range could trigger short-term bullish sentiment.
- $91,700: A strong resistance level associated with the liquidity zone. A decisive break above this mark would be an early indicator of a potential trend reversal.
On the downside, Bitcoin needs to hold above these critical support levels to avoid further declines:
- $79,263 (0.5 Fibonacci Level): This level has been defended so far, but another test could pose a risk of further breakdowns.
- $75,000: A deeper liquidity zone that could act as support in case selling pressure increases.
*This is not investment advice.