Bitcoin risks '10-15%' BTC price dip after key rejection near $89K

Data from TradingView shows BTC/USD cooling after hitting new April highs of $88,874. Having found strength at the start of the week, Bitcoin raised hopes of a gold copycat move as the latter set multiple all-time highs.

Those highs continued on April 22, while BTC price action conversely saw rejection at the key 200-day simple moving average (SMA). “Interesting spot. Broke above the Daily 200EMA (Blue) and diagonal resistance. So far, saw a sharp rejection from the Daily 200MA (Purple),” popular trader Daan Crypto Trades summarized in a post on X alongside an explanatory chart. “Fun won't start until we get some daily closes back above the previous range low at ~$90K. Important to hold ~$85K below I'd say.”

The 200-day SMA traditionally forms support during Bitcoin bull markets but was lost in March as crypto faced sell-side pressure when the US trade war began. Since then, BTC/USD has seen five-month lows under $75,000, and despite a healthy rebound, some market participants are keen to call time on the latest episode of price upside. Among them is fellow trader Roman, who referenced stochastic relative strength index (RSI) values in “overbought” territory. “As we approach horizontal resistance, I wanted to show that the last 4 times stoch RSI has been overbought, we’ve seen a 10-15% correction,” he noted, adding that such a move “would make perfect sense” given downward momentum on the S&P 500.

Daily stochastic RSI was at the top of its 0-100 scale on April 22.

Source: CoinTelegraph

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