Bitcoin 89000 USD faces resistance! Analysts warn of a "big pullback": the market is severely overbought, with a bottom at 76000 USD.

US President Donald Trump's fierce remarks last night demanding that Powell cut interest rates immediately, coupled with the lack of progress in the US-Japan negotiations, once again put pressure on financial markets, and the four major indexes of US stocks fell sharply again. But Bitcoin appears to be a safe haven target, bucking the trend and breaking above $88,000 this morning. (Synopsis: Trump choked Powell "to fire you faster than cut interest rates", Fed independence affected will hit the market? (Background added: EU prepares to cut interest rates for the 7th time" Trump chokes Fed again: Powell always miscalculates the economy and should fire and cut interest rates immediately) Bitcoin's recent rally due to Fed independence factors has touched an important area close to $89,000, which is considered by technical analysts to be a strong resistance level - that is, historical selling pressure has tended to exceed buying pressure, thus preventing the price from rising further. Bitcoin failed to effectively break through and gain a foothold after reaching this area, but instead experienced a clear phenomenon of "price rejection". This usually means that around that level, the seller is stronger than the buyer, causing the price to turn down. It may indicate that early buyers chose to take profits at this high, or that there are a large number of sell orders pre-hanging near this resistance level, and the inability to break through the key resistance level increases the likelihood of a downward correction in the short term. Technical Analysis: 15% Potential Pullback Based on this price rejection around $89,000, the analyst further noted that Bitcoin could face a risk of about 15% of the price pullback, which analysts believe is about 15% down from the high (or rejection point) of $89,000 (calculated as about $89,000 * (1 – 0.15) = $75,650 Near the US dollar), there is an important support area, which could be the previous price-intensive trading area, the important moving average position, or the key level of the Fibonacci retracement. If the price does pull back to this area and gain buying support, it may end the short-term decline; But if even this potential support level is broken, it could trigger a larger decline. Therefore, this 15% pullback forecast provides a potential downside risk range for market participants to keep a close eye on. BTC enters the overbought zone Another trader, Roman mentioned, that the current RSI index may indicate the possibility of a large correction in the market, and when the price is close to 89k, the RSI is in the overbought zone (usually above 70) or there is a bearish divergence (the price makes a new high and the RSI does not make a new high), which increases the likelihood of a pullback. The line chart shows that in the past, when the RSI exceeded a certain value, it was often followed by a decline, and the recent RSI value has shown this sign, and historical data supports this RSI retracement theory. In addition, there are three small indicators that can technically show a retracement trend: Volume (Volume): Accompanied by a huge volume at 89k resistance, this is usually a stronger reversal signal. Moving Average (Moving Averages): A price dip below a key short-term moving average, such as the 20-day or 50-day EMA, may be seen as a signal of a weakening short-term trend. Market Funding Rates (Funding Rates): In derivatives markets, excessively high funding rates may indicate that bulls are overcrowded and the market is prone to deleveraging-induced pullbacks. The overall economic risk aversion may turn Recently, thanks to Trump's threat to Federal Reserve Chairman Powell, there has been a new wave of safe-haven funds such as gold and bitcoin, but it must still be noted that the safe-haven properties of bitcoin and gold are very different from the nature of the market, and under Trump's uncertainty policy, it is still likely that short-term safe-haven demand is "gold rises, bitcoin falls" situation. This means that today's bitcoin quickly pulls back from 70,000 to close to the 90,000 level, which may be a short-term effect, and the data and relevant historical technical analysis indicators believe that the probability of the current pullback is very large, and if bitcoin is slowly rising and gradually climbing in the case of large trading volumes, it may be a relatively healthy state for the overall technical architecture. But the reader must be reminded to be rational and patient. The cryptocurrency market is extremely volatile, and short-term price pullbacks are the norm. Forecasts based on technical analysis are not 100% accurate, and unexpected movements can occur in the market at any time. Investors should formulate reasonable trading strategies according to their own risk tolerance, investment objectives and judgment of the market, and avoid making emotional decisions due to short-term fluctuations in the market. Related reports Fed Bauer clearly "does not bail out", can cryptocurrencies wait for the liquidity feast? US think tank spouts Trump Bauer: Fed interest rate cut is too much, "inflation is about to explode", economics has completely failed Fed Powell shouted "no urgent interest rate cut", the US economy is still very strong; Trump responded: The action is too slow 〈Bitcoin $89,000 blocked! Analysts warn of a "big pullback": the market is seriously overbought, the bottom is at 76,000 magnesium" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".