Key Points

• Bitcoin fell below $83,000 on Monday, after rising by more than 4% in the previous week.
• Ethereum falls below $2,700, while XRP consolidates around $1.500
• BTC remains above the 50-day, 100-day, and 200-day exponential moving averages.

After rising last week, Bitcoin, Ethereum, and XRP have seen a relatively calm trend at the beginning of this week. On Monday, Bitcoin fell below $83,100, Ethereum traded below $2,700, while XRP hovered around $1.500.

These trends indicate that traders are re-evaluating the next direction for the market after its recent rise.

Despite the pullbacks, the technical outlook for Bitcoin remains positive. The largest cryptocurrency by market capitalization is still above several closely watched moving averages, and its momentum indicators are also still on the upside.

The key question at the moment is whether buyers will be able to push BTC back near $85,000, or whether this pause will evolve into a deeper pullback.

Bitcoin remains above the key moving average

Bitcoin closed at $83,100 on Monday, up more than 4% from last week. After a pullback from recent highs, the overall short-term upward trend has not yet been broken: the BTC is still above the 50-day, 100-day, and 200-day exponential moving averages ( EMA ).

On the 50th day, EMA was at $77,323; on the 100th day, EMA was at $73,931; on the 200th day, EMA was at $74,253.

Currently, the trading price of BTC is significantly higher than this set of moving averages. This gives buyers room to absorb a moderate pullback. However, if it falls towards the 50-day EMA, it will pose a more substantial test to this rebound than when it broke below $83,600 on Monday.

This distinction is particularly important after a strong upward trend of a week. The market can fall from high levels while still maintaining an upward trend, but if it repeatedly fails to regain lost ground, buyers' confidence may gradually weaken. Therefore, traders will pay attention to both the extent of the decline under BTC and the speed at which demand returns.

Kinetic energy cooling, $85,000 holding back the upward trend

The Bitcoin Relative Strength Index ( RSI ) is close to 61, indicating that the momentum remains positive. This reading is still below what is generally considered an overbought level, which means that if buyers take control again, there is still room for prices to rise further.

The Moving Average Convergence Divergence indicator ( MACD ) has cooled down, but it is still slightly positive.

This combination indicates that the upward trend is still present, although it is not as strong as during the recent rebound. The momentum indicators are changing rapidly; therefore, the price's performance near the current resistance levels will provide a clearer test of the trend.

The first resistance level is around $85,000. Bitcoin needs to overcome the selling pressure near this level in order to more convincingly prove its ability to continue the gains from last week. If the upward attack fails, BTC may continue to trade sideways within this range, waiting for both buyers and sellers to digest the recent trend.

On the downside, the current price range is the first support area that needs attention. If there is further decline, the 50-day EMA at $77,323 will become a focal point, followed by the long-term moving average near $74,000. Further below are the previously formed horizontal support levels of $66,500 and $62,300.

These price levels outline possible testing ranges, rather than predictions that BTC will definitely reach these levels. In the short term, the range of contention is narrower: whether Bitcoin can remain stable above $83,000 and attempt to break through to $85,000 again.

Ethereum fell below $2,700, while XRP consolidated around $1.500, adding a cautious tone to the beginning of this week.

Both of these assets have made a slight adjustment under the influence of Bitcoin, however, the data provided in the text does not offer equally clear support or resistance levels for these two tokens.

For traders who follow these three major cryptocurrencies, Bitcoin's reaction to the $85,000 level may provide a useful reference for the broader market risk appetite.

If this resistance level is broken through again, it may indicate that buyers are still willing to pursue the gains from last week. If the market continues to consolidate, it suggests that traders are still waiting for a clearer direction.