Bitcoin price started a fresh decline below the $90,000 zone. BTC is back below $88,500 and might struggle to regain bullish momentum.

• Bitcoin started a fresh decline below the $92,000 zone.
• The price is trading below $90,000 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $91,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another decline if it fails to stay above the $85,000 zone.

Bitcoin Price Faces Resistance

Bitcoin price started a fresh decline from the $95,000 resistance level. BTC traded below the $92,000 and $90,000 support levels. The price dived over 10% and traded below the $88,000 support zone.

There was a clear move below the 50% Fib retracement level of the upward wave from the $84,500 swing low to the $95,000 high. Finally, the price tested the $82,000 support zone. A base was formed and the price is now recovering some losses above the $83,500 level.

Bitcoin price is now trading below $90,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $88,750 level. The first key resistance is near the $90,000 level.

The next key resistance could be $91,500. There is also a connecting bearish trend line forming with resistance at $91,000 on the hourly chart of the BTC/USD pair. A close above the $91,500 resistance might send the price further higher. In the stated case, the price could rise and test the $93,000 resistance level. Any more gains might send the price toward the $94,200 level or even $95,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $90,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $85,000 level. The first major support is near the $83,200 level.

The next support is now near the $82,250 zone and the 76.4% Fib retracement level of the upward wave from the $84,500 swing low to the $95,000 high. Any more losses might send the price toward the $80,000 support in the near term. The main support sits at $78,800.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $85,000, followed by $82,250.

Major Resistance Levels – $90,000 and $91,500.

Litecoin (LTC) is down more than 12% in the last 24 hours, with its price trading around $100 and its market cap dropping to $7.5 billion. The sharp decline comes as selling pressure intensifies, pushing LTC’s RSI into oversold territory and Chaikin Money Flow (CMF) deeper into negative levels.

If the downtrend continues, LTC could test $92.5 support and potentially drop to $80, its lowest price since November 2024. However, if momentum shifts, LTC could attempt a recovery, breaking back above $100 and targeting resistance levels at $106, $111, and possibly $119.

LTC RSI Is Currently At Oversold Levels

Litecoin Relative Strength Index (RSI) has dropped to 26.7, a sharp decline from 57.1 just two days ago. This steep fall indicates that LTC has entered oversold territory, suggesting intense selling pressure.

Such a rapid drop often reflects panic selling or a strong bearish trend, leaving LTC vulnerable to further downside unless buyers step in.

However, an RSI this low also signals that the asset may be nearing a potential short-term reversal, as oversold conditions often lead to relief bounces.

RSI is a momentum indicator that ranges from 0 to 100, measuring the strength of recent price movements. Readings above 70 indicate overbought conditions, where assets are likely to face selling pressure, while readings below 30 suggest oversold conditions, where buying opportunities may emerge.

With LTC’s RSI now at 26.7, it is deep in oversold territory, increasing the chances of a short-term bounce.

However, if bearish momentum persists and RSI continues falling, Litecoin could struggle to find support and extend its losses before any recovery attempt.

Litecoin CMF Fell Below -0.20

Litecoin’s Chaikin Money Flow (CMF) is currently at -0.21, down from 0.03 just two days ago, indicating a significant shift in capital flow. Earlier, CMF briefly dropped to -0.26, its lowest level since mid-February, reinforcing bearish sentiment.

A declining CMF suggests that selling pressure is increasing, with more capital flowing out of LTC than into it.

This trend signals that investors are pulling liquidity from Litecoin, making it difficult for the price to sustain any short-term rebounds.

CMF measures buying and selling pressure by analyzing volume and price movements ranging from -1 to 1. Positive values indicate accumulation, meaning more money is flowing into an asset, while negative values suggest distribution and increased selling pressure.

With LTC’s CMF now at -0.21, sellers remain in control, and unless buying volume returns, LTC could struggle to find support.

The recent drop to -0.26 shows that capital outflows are reaching extreme levels, increasing the risk of further downside unless sentiment shifts.

Will Litecoin Fall Below $90 Soon?

If Litecoin’s downtrend continues, the price could test the $92.5 support level, a key zone that has previously held buyers. If this level is lost, LTC could drop as low as $80, marking its lowest price since November 2024.

With momentum indicators like RSI and CMF showing bearish pressure, further declines remain a possibility unless buyers step in to defend support.

However, if LTC reverses its trend, it could regain momentum and push above $100, with $106 as the first major resistance level.

A breakout above this could lead to a test of $111, and if bullish momentum strengthens, LTC could rally toward $119.

El Salvador purchased five Bitcoins today, and President Bukele claimed that the country doesn’t plan to stop in the future. However, the government signed an agreement with the IMF mandating that the public sector can no longer voluntarily purchase BTC.

Some community members have speculated that the agreement includes some extension period that the public isn’t aware of. Otherwise, this agreement and the $1.4 billion in associated loans could blow up in everyone’s face.

El Salvador Keeps Buying Bitcoin

Since El Salvador made Bitcoin legal tender in 2021, the Central American nation has become a major BTC holder. However, after years of a combative relationship with international financial institutions, the IMF attempted to soften its anti-Bitcoin policies last October.

El Salvador agreed to amend its laws, but it has continued stockpiling the asset since. Specifically, the IMF’s technical memorandum of understanding includes a clause that prohibits the voluntary accumulation of Bitcoin by the public sector.

Additionally, the agreement restricts the public sector from issuing any debt or tokenized instruments indexed to or denominated in Bitcoin.

However, the El Salvador government continues to purchase 1 BTC per day as part of a long-term strategy to stockpile the asset. Today, it acquired five Bitcoins, further contradicting this directive.

Samson Mow, an influential community figure, has been following a December agreement between El Salvador and the IMF. Today, the IMF published additional commentary, claiming that El Salvador was neither allowed to purchase nor mine Bitcoin.

“If there is a loophole for continued buying, I didn’t find it in the document. If the plan is to just outright defy the IMF, I don’t think that is good for the additional loans, or to present an image of a serious stable country,” wrote Samson Mow.

However, President Bukele rejected these assertions.

“This all stops in April, this all stops in June, this all stops in December! No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future,” Bukele claimed on X (formerly Twitter).

On one hand, the country has plenty of reasons not to capitulate to the IMF. El Salvador has used Bitcoin to lead broader societal transformations, fostering a domestic community and using ample geothermal energy to create massive mining operations.

Abandoning these efforts would severely curtail the country’s economic independence.

However, where does this aggressive stance leave the IMF agreement? El Salvador allegedly consented to stop buying Bitcoin so it could receive $1.4 billion in loans. What happens to that money or any future trade deals? Is Bukele’s activity prohibited or not?

There are many questions still in the air. It’s possible that the IMF gave El Salvador a few extra months to buy Bitcoin, and Bukele is maintaining his outward bullishness until then.

Yet, these concerns remain unanswered and further regulatory clarification might be needed down the line.