Bitcoin Dips Below $90K – Key Support and Resistance Levels to Watch

Bitcoin fell below $90,000 today, extending its decline from last month’s record high as economic concerns continued to weigh on investor confidence. The cryptocurrency briefly dipped under $86,000 before rebounding to around $89,000.

The downturn comes amid confirmation that planned tariffs on Mexico and Canada will move forward, a policy decision that has heightened inflation fears. Investors often view tariffs as inflationary, which could reduce the likelihood of interest rate cuts this year—an outcome that could impact risk-sensitive assets like Bitcoin.

Market Outlook and Historical Trends

Historically, March has been an unpredictable month for Bitcoin, showing both gains and losses in previous years. Since the start of the year, Bitcoin has declined by 5%, though it remains up approximately 25% since the U.S. presidential election. Optimism surrounding a crypto-friendly legislative approach has provided some support, but market volatility remains high.

Technical Analysis: Key Price Levels

Double Top Formation and Momentum Shift

Bitcoin’s recent price action has formed a classic double top pattern, with two peaks appearing between December and January. The recent breakdown below the pattern’s neckline, accompanied by above-average trading volume, reinforces a bearish outlook.

Additionally, a divergence in the relative strength index (RSI) suggests weakening momentum. However, the RSI has now entered oversold territory, signaling the potential for short-term recoveries.

Support and Resistance Levels to Watch

Key Support Levels

• $80,400: This level aligns with the 200-day moving average and a previous strong support zone from mid-November, making it a critical area for buyers.

• $74,000: If Bitcoin continues to decline, this region could act as a strong support level, as it aligns with multiple past resistance points that have since turned into potential buying zones.

Major Resistance Levels

• $98,500: A rebound above the double top’s neckline could push Bitcoin toward this level, where the 50-day moving average currently resides.

• $106,000: If momentum strengthens, Bitcoin could retest this level, which corresponds with the previous peaks in the double top formation.

Bitcoin’s future will largely depend on how investors respond to the current market situation. If inflation worries settle down or there’s a stronger chance of interest rate cuts, we might see Bitcoin bounce back. But if economic concerns stick around, the downward trend could continue.

For now, traders and long-term investors are keeping a close eye on key price levels to see where Bitcoin might stabilize or face resistance in the coming days.

Also Read: Bitcoin Falls Below $90K as Crypto Market Faces Heavy Selloff