Bitcoin is currently navigating the challenging $90,000 support zone, which plays a significant role within a broader bull flag and ascending triangle pattern. Recent technical analysis indicates that the cryptocurrency managed to stay above this critical level despite facing downward pressure.
As of Thursday, Bitcoin maintained its position above the $90,000 mark, with price wicks suggesting attempts to dip below this level that ultimately failed. Following these tests of support, Bitcoin experienced a brief upward movement before hitting horizontal resistance, which subsequently led to a price rejection.
On Friday morning, Bitcoin returned to re-test this contested support level. Analysts have pointed out that if this support fails, it could lead to a decline towards a significant trendline and another horizontal support level. The analysis highlighted that the daily timeframe showed the price had dipped to the lower boundary of the bull flag pattern, raising concerns about the potential invalidation of this bullish formation.
Technical indicators, particularly the Stochastic RSI, have indicated that readings across multiple timeframes are at oversold levels. This suggests that there could be a potential for upward price momentum to develop soon. Weekly chart analysis shows that Bitcoin has bounced back to the support level, with a green ascending triangle pattern emerging as a key formation to watch.
Analysts believe that a breakout from this triangle could pave the way to an important horizontal resistance level. Should a breakout occur over the weekend or into the following week, Bitcoin might encounter resistance at a round-number level before challenging key resistance levels. This will ultimately determine whether any upward movement signifies sustained momentum or is merely a temporary rally within a larger downtrend.
As of Friday morning, Bitcoin is trading at approximately $90,000, according to market data.
