Bitcoin Faces Bearish Pressure as Key $90K Resistance Holds Firm

Bitcoin (BTC) is trading under significant pressure, having been rejected at the key $94,000 to $98,000 resistance range. This area acted as neckline resistance in a larger technical setup, and the subsequent sharp move lower confirmed a bearish trend. According to the analysis, a failed Head and Shoulders pattern and a bear flag breakdown support the current downward trajectory. At press time, the asset hovers around $88,000, having fallen more than 6% over the past week.

Analysts are now tracking three primary support levels: $80,000, $75,000, and $70,000. Analyst Crypto Patel notes these levels match the expected move from the breakdown, pointing to a possible 22% decline from current levels. The trend is considered firmly bearish until Bitcoin can regain and hold above $92,000. Despite a minor recovery of under 1% in the last 24 hours, the asset remains near its lowest point in a month, with the market bracing for a deeper correction.

Technical hurdles are compounding Bitcoin’s challenges. According to Material Indicators, a CoinMarketCap contributor, the 50-day simple moving average (SMA) near $90,000 is acting as formidable resistance. This level is being defended by liquidity worth over $50 million, making it exceptionally difficult for bulls to regain control. The 21-day moving average, near $91,500, could add further resistance if the price attempts to rise again.

A crossover between the 21-day and 50-day moving averages is expected next month. If the shorter average crosses below the longer one, it would generate a classic bearish signal, adding further downward pressure. Material Indicators’ ‘Trend Precognition’ tool has also flashed a new signal on the BTC daily chart, suggesting bulls have significant work to do to engineer a meaningful rally before the monthly close.

Adding to the technical picture, analyst BitBull reports that Bitcoin is sitting near the Active Investor Mean at $87,500. This level often acts as a critical decision point; if held, it may attract buyer support. However, if lost, the asset could fall toward the next significant historical support at $80,700.

The current price action is creating distinct pressures across different investor cohorts. Short-term holders have a cost basis above $96,000, meaning many are now sitting on losses. This creates a persistent source of selling pressure just above the current price. In contrast, long-term holders remain in substantial profit, with their average cost basis closer to $56,000, which may provide a more stable foundation if prices fall further.

Bitcoin’s decline has been exacerbated by a series of large liquidations in the derivatives market. These forced sell-offs added significant pressure during a week marked by wider uncertainty in global markets, including sharp moves in currencies and US Treasury bonds. The market is now keenly awaiting a policy decision from the US Federal Reserve and earnings reports from major tech companies, both of which could dramatically affect sentiment across all risk assets, including cryptocurrency.

Adding a historical cautionary note, crypto analyst Aman observed that Bitcoin is “on the edge of a 4th consecutive red month.” This rare pattern was last seen in 2018, a period associated with a prolonged bear market. As previously reported, market analysts remain cautious, noting that recent lows may not yet mark a final bottom for the world’s leading digital asset.