$BTC 🚨Bitcoin recovers after a massive correction🚨
Bitcoin price closed below the midpoint of a horizontal parallel channel at $87,787 on Sunday, following a 7.4% correction last week. At the time of writing on Monday, BTC recovers slightly, nearing this broken level.
If BTC breaks and closes above $87,787 on a daily basis, it could extend the recovery toward the upper boundary of the horizontal pattern at $90,000.
However, the Relative Strength Index (RSI) on the daily chart is 39, below the neutral 50 level, indicating bearish momentum. For the recovery to be sustained, the RSI must move above the neutral 50 level. Traders should remain cautious, as the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week and has remained intact, suggesting a downward move.
However, if BTC corrects, it could extend the fall toward the lower consolidation boundary at $85,569, which coincides with the 78.6% Fibonacci retracement level.
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