After facing rejection near the $86,500 mark, Bitcoin (BTC) has entered a consolidation phase below the crucial $85,000 zone, with technical indicators suggesting that a decisive move could be on the horizon. According to recent data from Kraken, BTC might soon test a breakout above resistance or risk a deeper correction.
Bitcoin Faces Resistance at $85,000 Zone
The flagship cryptocurrency initiated a pullback after failing to maintain momentum above $85,500. The price dipped to a local low of $83,171, testing strong support near $83,200. Since then, Bitcoin has corrected modestly, climbing above $83,800 and crossing the 50% Fib retracement level from the $86,401 swing high to the $83,171 low.
However, BTC remains capped by the 100-hourly Simple Moving Average and a bearish trend line resistance at $84,800. A breakout above these levels could shift short-term sentiment in favor of the bulls.
Key Levels to Watch: Resistance and Support
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Immediate resistance lies at $84,750, followed by the critical zone at $85,150—the 61.8% Fib retracement level.
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A successful close above $85,500 could ignite bullish momentum toward $85,800 and potentially $86,400.
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On the downside, initial support is seen near $83,900, with major support at $83,200.
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A breakdown below $82,200 may push BTC toward $81,500 or even the long-standing support at $80,800.
Market Outlook: Neutral but Poised
Currently, the MACD indicator shows a slowdown in bearish momentum, while the RSI floats around the neutral 50 level, signaling indecision among traders. The market remains range-bound, but technicals suggest a breakout—either upward or downward—could soon occur.
Investors are watching closely as Bitcoin attempts to reclaim key technical levels. If successful, bullish sentiment may return quickly. Conversely, continued weakness below $85K could invite further selling pressure, dragging BTC toward lower support zones.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
