Bitcoin (BTC) is showing signs of slowing down this Tuesday (13). With this, the possibility of the asset surpassing the US$ 90 thousand barrier is in check.
Currently, BTC is showing signs of consolidation near the $87,000 level, with a price swing of just 0.4% in 24 hours – according to CoinGecko.
Check out below what technical analysis has to say about the future price movement of the world's largest cryptocurrency.
Will Bitcoin enter consolidation?
The 4-hour chart below shows that Bitcoin is in the process of consolidation after forming a new record price at $89,864 on Tuesday (13). The drop in volume recorded in the last candles reinforces this scenario.
It is worth noting that the price of the cryptocurrency has found support at the 9-period exponential moving average (EMA) (blue).
Bitcoin (BTC) Chart on TradingView
Despite signs of a slowdown, a correction has yet to be confirmed. For that to occur, BTC would need to fall to test the 0.382 retracement level at $81,210.
However, the 2-hour chart supports this scenario. Firstly, the asset formed a double top close to its ATH. This type of pattern is known to anticipate trend reversals.
Additionally, the Relative Strength Index (RSI) has formed a bearish divergence. A bearish divergence occurs when the asset's price is forming higher highs while the RSI is making lower highs.
Bitcoin (BTC) Chart on TradingView
This divergence suggests that buying pressure is weakening, signaling a possible trend reversal or correction.
However, even if a correction is confirmed, the medium- and long-term trend remains bullish as long as Bitcoin remains above the 0.618 retracement level at $75,682. As long as it remains above this level, the cryptocurrency could eventually make a new jump above $90,000.
The article Bitcoin (BTC) Prediction: Can the Price Reach $90,000? was first seen on BeInCrypto Brazil.
