• Bitcoin is trading sideways near $87,000, indicating potential buildup for a significant movement in the market.
• Currently, BTC is testing the 0.618 Fibonacci level, an important support zone for traders.
• Resistance around $92,000-$93,000 rejected Bitcoin, requiring recovery to $88,000-$89,000 to stabilise market sentiment.

Bitcoin is at a critical phase due to the current losses witnessed in the past, and it is evident that the markets are displaying signs of moving sideways. Critical levels of support and resistance are closely observed in this period to assess what may be the next big movement for Bitcoin.

At the time of writing, Bitcoin (BTC) is trading at $86,718, with a 24-hour trading volume of $89.5 billion and a market capitalisation of $1.73 trillion. Over the last 24 hours, BTC has fallen by 5.21%, reflecting a sharp pullback from recent highs.

Bitcoin Tests Critical Fibonacci Level

Crypto analyst, CryptoPulse, observed that the current movement of BTC has been sideways and that it shows very little momentum in the process. In the opinion of the analyst, such movements of the markets are always indications that the markets are preparing for a powerful movement.

He pointed out the 0.618 Fibonacci level from the last rally as an important point to watch, and indeed, at the moment, BTC is testing this level. Together with the mid-week level of support, it is evident that the area to watch for the next movement can be identified.

He explained, if it breaks down, then patience is the key. And what I’m trying to achieve here is just quick entries and exits with the use of Toobit, and it helps in managing positions when you are in such tight ranges, he further added.

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Bitcoin Faces Key Resistance Zone

Another analyst, Ted, shared insight on the market, explaining that BTC had been rejected around the area of the resistance zone of $92,000 to $93,000 and had dropped by almost $7,000. Ever since, it had been ranging around the level of $86,000.

“Bitcoin must retake the $88,000 to $89,000 zone to stabilise,” Ted views. “Otherwise, it may revisit its November lows.”

Market participants and investors alike are eagerly waiting to see whether BTC will recover from the current position or whether it will continue slumping in order to prepare for what is coming next.

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