Bitcoin (BTC) is currently trading at approximately $87,000, having briefly surpassed $90,000 before retreating back to its previous trading range. In the past week, Bitcoin’s value has decreased by 4%, with a trading volume of $50 billion within the last 24 hours. Notably, several market indicators suggest a potential direction change may be forthcoming.

Key Trendline Remains Strong

Since 2018, Bitcoin has frequently interacted with a diagonal resistance line, identified as a critical marker by Bitcoinsensus. Historical trends indicate that reaching this level has often resulted in significant price corrections. Past instances of such rejections include an 83% drop following the first rejection in 2018 and subsequent pullbacks of 56%, 77%, and 34% in later years. The current situation marks a fifth rejection, with Bitcoin having already suffered a 34% decline from its recent peak of over $126,000. The trendline thus serves as formidable resistance.

Bitcoin Price Chart - Bitcoinsensus

Bitcoin (BTC) Price Chart 18.12. Source: Bitcoinsensus/X

Additionally, a potential death cross is developing on the 3-day chart, with the short-term moving average nearing a downward cross under the long-term average. Currently, Bitcoin trades below both averages, heightening the likelihood of further declines if this crossover validates.

Trader Butcher remarked,

“If $BTC doesn’t pump hard from here, the 3D death cross will send this right to 50K with speed.”
(Guidance: This type of signal often precedes increased selling unless a timely reversal occurs.)

Observing $88K and $80K for Market Trajectory

Analyst Michaël van de Poppe pointed out that Bitcoin’s stability around $87,000 highlights three key levels to observe: $87,700, $83,800, and $80,500, which could serve as potential support zones. An upward move above $88,000 might enhance market sentiment. He remarked,

“Break $88K and we’re back in the good music land.” He also noted the upcoming Bank of Japan’s decision could generate market reactions, but cautioned: “When everybody expects one thing, usually the opposite happens,” implying market behavior this time may be less predictable than anticipated.

Recent reports from CryptoPotato indicate that Bitcoin’s RSI is nearing levels historically associated with substantial recoveries. The last five instances where it dropped below 30 have subsequently led to price increases. Nevertheless, structural tools currently signal potential weakness, as evidenced by the Bull-Bear Index and related market trends.

Moreover, Daan Crypto noted that Bitcoin is trading at similar levels to six months ago, suggesting,

“Liquidity taken on the way up and on the way down,” with $95,000 mentioned as the nearest significant liquidity area.