FxNews—Bitcoin began a bearish momentum from $100,000 and is currently testing the 50-period SMA as resistance. The recent decline was mainly due to overbought conditions.
Last week, the Stochastic Oscillator hovered in overbought territory. Additionally, the RSI 14 indicator signaled bearish divergence, hinting at a possible consolidation phase or a trend reversal.
As of this writing, the BTC/USD trades at approximately $93,800, while Stochastic depicts 22 in the description, meaning BTC is oversold.
Bitcoin Nears Key $91000 Support Level
The immediate support is at $91,400. From a technical perspective, a new bullish wave will likely form if the prices hold above the immediate support. In this scenario, the next bullish target could be revisiting November’s peak at $100,000.
Please note that the bullish outlook should be invalidated if BTC/USD closes and stabilizes below $91,400. If this scenario unfolds, the current downtrend could extend to the 23.6% Fibonacci support level at $88,000.