Bitcoin is facing challenges at the resistance level of $89,213.24, indicating possible increased volatility in the market.
BTC Price Action and Key Levels
At $89,213.24, Bitcoin tested the 100% Fibonacci retracement level but faced resistance. The cryptocurrency is currently trading below this level due to a rejection. The supply zone between $92,500 and $96,500 remains an area of strong selling pressure where Bitcoin previously met resistance. Below $70,000, a demand zone could offer key support if the correction continues.
Market Sentiment and Potential Scenarios
There could be fresh positive momentum if a breakout above the supply zone occurs. However, if $89,213.24 is not recovered, further declines may occur. This might present buying opportunities for long-term investors. The next trading sessions will clarify Bitcoin's path as it interacts with key technical levels.
Impact on Altcoins
Altcoins like XRP and WIF might follow BTC's movement, experiencing similar declines and potential rebounds. Traders face both risks and opportunities in this scenario.
The situation with Bitcoin remains tense. Ongoing volatility and key technical levels will shape the cryptocurrency's short-term movements.
