Bitcoin at Risk? Key Support at $88,789 in Focus

Key Insights:

• Bitcoin holds above $88,789, a key support level tied to short-term wave structure.
• Price nears 730-day SMA, a level that historically marked major market turning points.
• A move below $88,789 may signal wave (B) is unfolding, opening room for further downside.

Bitcoin was trading near $89,582, showing a modest move in the last 24 hours. Over the past week, the price has dropped 7.6%, with a current daily trading volume above $52.5 billion. The market is now watching a key support level that could shape Bitcoin’s next move.

Wave Count Points to Critical Range

Bitcoin’s recent price movement may still be forming wave (4) or wave (A) in a corrective pattern. The chart from More Crypto Online shows price action consolidating just below resistance between $90,772 and $91,680. This zone could cap a final short-term high before a possible reversal.

The analyst noted,

 “Bitcoin might form one more high in wave c of (4) or wave (A), but a break below $88,789 would indicate that at least wave (B) is already unfolding.”

However, this makes $88,789 a key level for the short-term structure.

Key Support Zone Under Watch

The $88,789 level matches the 50% Fibonacci retracement of the recent upward move. Holding this line would support the idea of one more move higher. Dropping below it would suggest the start of a deeper correction.

If that happens, the next possible support areas sit at $88,388 and $87,858, based on the 61.8% and 78.6% Fibonacci levels. These would be the next levels to watch for a reaction from buyers if current support fails.

Long-Term Moving Average in Play

The broader chart also shows Bitcoin nearing its 730-day simple moving average (SMA), now around $85,180. This level has marked key shifts in previous market cycles. According to Ali Charts, “That’s the 730-day SMA for Bitcoin. This level has historically shaped major market transitions.”