Bitcoin Drops 4% From Highs, Tests $93,500 Support

Bitcoin's price has experienced a downward correction, retreating from its recent highs. The cryptocurrency is currently trading below $95,000, testing the support zone at $93,500. Despite this decline, Bitcoin has managed to remain supported above the $94,500 zone, indicating a level of resilience in the market.

The price of Bitcoin has been trading below $96,000 and the 100 hourly Simple Moving Average. A bearish trend line is forming with resistance at $95,250 on the hourly chart of the BTC/USD pair. This trend line suggests that Bitcoin may face further resistance as it attempts to recover from its recent decline.

Bitcoin's price started its downward correction after failing to surpass the $98,000 resistance level. The cryptocurrency declined below the $96,500 and $95,500 support levels, with bears pushing it below $95,000. A low was formed at $93,570, and the price is now attempting to recover, moving above the $94,000 level and toward the 23.6% Fib retracement level of the recent decline from the $97,885 swing high to the $93,570 low.

On the upside, immediate resistance is near the $94,500 level, with the first key resistance near the $95,250 level. The next key resistance could be $95,750 and the 50% Fib retracement level of the recent decline from the $97,885 swing high to the $93,570 low. A close above the $95,750 resistance might send the price further higher, potentially testing the $96,800 resistance level and even rising toward the $98,000 level.

However, if Bitcoin fails to rise above the $95,250 resistance zone, it could start another downside correction. Immediate support on the downside is near the $94,000 level, with the first major support near the $93,500 level. The next support is now near the $93,200 zone, and any more losses might send the price toward the $92,500 support in the near term. The main support sits at $91,200.

Technical indicators suggest that the Hourly MACD is now losing pace in the bearish zone, while the Hourly RSI (Relative Strength Index) for BTC/USD is now below the 50 level. These indicators suggest that Bitcoin may continue to face selling pressure in the near term, but the support zone at $93,500 remains intact, providing a level of stability for the cryptocurrency.