What’s Next for Bitcoin After Cryptocurrency Falls Below $90K? Key Levels to Watch

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What’s Next for Bitcoin After Cryptocurrency Falls Below $90K? Key Levels to Watch

Source: TradingView.com

Bitcoin plunged below $90,000 to a three-month low on Tuesday, continuing a slide from its record high set last month, as economic uncertainty weighs on investor sentiment.

The cryptocurrency broke down below the neckline of a double top pattern on above-average volume in Tuesday’s trading session to confirm the formation.

Investors should watch crucial support levels on bitcoin’s chart around $80,400 and $74,000, while also monitoring key resistance levels near $98,500 and $106,000.

Bitcoin (BTCUSD) plunged below $90,000 today, continuing a slide from its record high set last month, as

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.

Bitcoin’s price, which fell below $86,000 earlier in the day before recovering back around $89,000 recently, came under pressure from news that the Trump administration’s

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. Investors typically view tariffs as inflationary, which could scuttle possible

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this year, a move that would weigh on non-yielding

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assets like bitcoin.

Looking ahead, March is

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, with the cryptocurrency having logged an even amount of positive and negative returns for the month between 2013 and last year, according to data from crypto analytics site Coinglass. Bitcoin has slipped 5% since the start of the year, but is still up about 25% since the U.S. presidential election, amid hopes that the Trump White House and a crypto-supportive Congress will adopt policies that support the asset class.

Below, we take a closer look at bitcoin’s chart and use

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to identify crucial price levels worth watching out for.

Since forming two distinct peaks between December and January, bitcoin’s price has continued to trend lower, creating a textbook

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pattern in the process. Moreover, a decisive

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below the

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on above-average

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in Tuesday’s trading session confirms the formation.

It’s also worth pointing out that as the cryptocurrency made a slightly higher high last month, the

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forged a comparatively shallower peak to signal a bearish

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, a technical occurrence indicating weakening price momentum.

However, recent selling has also pushed the RSI indicator into

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territory, raising the possibility of near-term upswings.

Let’s identify several crucial

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levels on bitcoin’s chart that investors may be watching.

Further selling below the double top’s neckline could initially see a move down to the $80,400 level. This area on the chart may provide support near the

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and the closing and opening prices of two key bars that formed during an impulsive move higher in mid-November.

Story Continues

The next crucial support level to watch sits around $74,000. Investors could view this region as a buying opportunity, given its proximity to a

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that links multiple prominent

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on the chart between March and October last year.

A recovery above the double top’s neckline could see the cryptocurrency’s price climb to the $98,500 level, a location that may provide overhead resistance near the respected

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, which currently aligns with a series of similar trading levels on the chart stretching back to late November.

Finally, a close above this area could lead to a retest of the $106,000 level. Investors who have

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may look to

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here near the double top pattern’s two peaks.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 

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 for more info.

As of the date this article was written, the author does not own any of the above securities.

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#Whats #Bitcoin #Cryptocurrency #Falls #90K #Key #Levels #Watch

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