Bitcoin Price Starts Downside Correction

Bitcoin price is correcting gains from the $95,000 zone. BTC is now back below $94,000 and might test the $91,200 support zone.

Bitcoin Price Starts Downside Correction

Earlier today, we highlighted that Bitcoin price remained stable above the $90,000 level and started a fresh increase. BTC was able to climb above the $91,500 and $94,000 resistance levels.

The bulls were able to pump the price above the $94,500 resistance. The recent high was formed at $95,348 and the price started a downside correction. There was a drop below the $94,500 and $94,000 levels. A low was formed at $92,900 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $95,348 swing high to the $92,900 low.

As of writing, Bitcoin price is trading below $94,000 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at $94,000 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $93,650 level. The first key resistance is near the $94,000 level. The next key resistance could be $94,150 and the 50% Fib retracement level of the downward move from the $95,348 swing high to the $92,900 low.

A close above the $94,150 resistance might send the price further higher. In the stated case, the price could rise and test the $94,500 resistance level. Any more gains might send the price toward the $95,500 level.

More Losses In BTC?

If Bitcoin fails to rise above the $94,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $92,800 level. The first major support is near the $92,000 level.

The next support is now near the $91,500 zone. Any more losses might send the price toward the $90,500 support in the near term. The main support sits at $90,000.

In other news, the latest data from Glassnode shows that Bitcoin’s PoW is now at a 10-month low with a total of 168 blocks being mined with the same timestamp.

As for what drove the recent price decline, it can be attributed to a report from the U.S. Bureau of Economic Analysis. The report revealed that the U.S. GDP expanded at an annualized rate of 2.4% in the second quarter. This finding surpasses the expectations of economists polled by Reuters, who had anticipated a growth rate of 1.8%.

Technical indicators:

Hourly MACD – The MACD is now increasing in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $92,800, followed by $92,000.

Major Resistance Levels – $94,000 and $94,150.