Bitcoin Drops 20% From Peak, Faces $86,190 Resistance

Bitcoin's price has been on a downward trend, failing to reclaim the $90,000 mark. Over the past few months, bears have dominated, pushing Bitcoin from above $100,000 to below $80,000, before a slight recovery to $83,000. This decline has raised doubts among investors about the continuation of the bull run. However, there is still a chance for Bitcoin to restart its bull market.

Crypto analyst RLinda on the TradingView website has noted that Bitcoin is showing some positive signs after a significant drop from its all-time high. Despite this, the downtrend persists, with major levels yet to be reclaimed for a confirmed breakout. The recent strength in Bitcoin's price, driven by localized growth in indices and expectations of lower interest rates from the Fed, is occurring amidst a severe tariff war between the United States and China, which has been a primary cause of the crypto market's crashes.

The current recovery in Bitcoin's price is facing a critical level at $86,190. If Bitcoin can overcome this resistance, further increases are likely. The next major resistance lies at $88,800, indicating that bulls still have a way to go before reclaiming the $90,000 level. However, if Bitcoin fails to clear this resistance, the price could fall further, with the first support at $83,170 and the next major support below $80,000 at $78,170. This could push the price back toward March 2025 lows. Analyst RLinda cautions that a sharp approach to the $88,800 level may result in a false breakout and correction.