Bitcoin, the world’s largest cryptocurrency, has seen a substantial decline in its price from the $92,500 zone. Currently trading below the $88,000 mark and the 100 hourly Simple moving average, Bitcoin’s price drop has raised concerns among investors and traders alike.
A bearish trend line has been observed, with resistance at $86,150 on the hourly chart of the BTC/USD pair. This data, fed from Kraken, indicates that the pair could face another decline if it fails to maintain stability above the $82,000 zone.
The Bitcoin price failed to maintain its position above the $92,500 level and experienced a significant decline. The price fell sharply below the $90,000 and $88,000 support levels, even plunging below the $85,000 mark. It tested the $80,000 zone with a low formed at $80,525. Currently, the price is consolidating losses and has risen above the $83,500 level and the 23.6% Fib retracement level of the downward move from the $89,203 swing high to the $80,525 low.
Currently, Bitcoin is trading below $85,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $85,000 level or the 50% Fib retracement level of the downward move from the $89,203 swing high to the $80,525 low.
The first significant resistance is near the $85,500 level. The bearish trend line is forming a connection with resistance at $86,150 on the hourly chart of the BTC/USD pair. The next critical resistance could be $87,150. Should the price close above this resistance, it could potentially drive the price further up to test the $88,500 resistance level. Any further gains could push the price towards the $90,000 or even $90,500 level.
However, if Bitcoin fails to rise above the $86,000 resistance zone, another decline could be on the horizon. The immediate support on the downside is near the $83,000 level, with the first significant support near the $82,000 level. The next support is now near the $81,200 zone. Any further losses might push the price towards the $80,000 support in the near term. The main support is stationed at $78,500.
Technical indicators suggest that the MACD is losing pace in the bearish zone, while the RSI for BTC/USD is now below the 50 level. This indicates that the major support levels are $82,000, followed by $80,000, and the major resistance levels are at $85,000 and $86,000.
