Bitcoin prices have rallied significantly in recent weeks, nearing the $95,000 mark. However, the charts suggest possible signals for a correction ahead.
Current Bitcoin Price Structure
On the daily chart, Bitcoin has printed its first red candle after several consecutive green sessions, indicating a potential short-term top forming around $95,000. This zone was previously marked by rejection back in March. The MA Ribbon, which includes the 20, 50, 100, and 200 simple moving averages, presents a crucial resistance confluence between $91,500 and $94,000. The price is now trading just above the 200-day SMA ($90,309), which has historically acted as a make-or-break zone for trend continuation.
Hourly Chart: Early Signs of Breakdown
The hourly chart indicates short-term weakness as Bitcoin retraced sharply after failing to break above $96,000 and is currently hovering near $94,400. The price has slipped below the 20- and 50-SMA lines, with the 100- and 200-SMAs now acting as overhead resistance around $95,000–$96,000. This crossover from support to resistance could signify waning momentum.
Key Support Levels for Bitcoin
The first major support level to watch is the 200-day SMA at $90,309. If Bitcoin closes below this level, further sell pressure could emerge. Below $90,000, the critical area becomes the $86,000–$88,000 range. Should this zone fail, a drop toward $78,000 is increasingly likely.
The current price action of Bitcoin remains within an overall bullish structure; however, short-term signals are flashing caution. Key support levels will be crucial in determining the next direction for prices.
