Bitcoin (BTC) extended its downturn today as on-chain analyst Ali Charts highlighted three major support levels now being tested. Bitcoin’s price action has been mostly range-bound this week as traders analyze how it interacts with key support levels.
The market as a whole has also experienced a decrease in volume and overall price action because of cautious sentiment and lack of pressure on the upside. At press time, the coin is trading at $88,252.28 with a decline of 1.45% over the past 24 hours.
Chart Signals Weakening Momentum
According to the TradingView chart, Bitcoin is now trading around $87,800, marking a clear breakdown from the $94,417 resistance area. The RSI has fallen to 38, signalling fading bullish strength and approaching oversold territory.
The MACD has also turned bearish with its descending histogram bars indicating an increase in the volume of selling pressure.
This technical setup has supported the opinion that the market will continue searching for liquidity at a lower price until there is enough bullish buying pressure created to change the direction of the market.
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Three Significant Points of Support
Ali Chart’s update on X highlights major accumulations of buying activity in the $87K, $83K, and $79K ranges, which historically have served as areas where long-term holders purchased their BTC.
However, the analyst suggests that if the price declines below the $87K accumulation, retracement may develop further than the initial accumulation zone.
If BTC maintains above $87K, there remains the possibility of a short-term bounce towards $90K–$92K. Conversely, if the sellers push the BTC price below that area, the next significant area of support identified by the analyst is $83K, and then again at $79K.
Bitcoin market participants are beginning to see signs of a slowdown in price action. The continued establishment and holding of support above these areas may allow traders to stabilize future price activity.
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