Bitcoin, the world’s most-valued digital currency, is currently facing a downward trend with its price falling below the $85,000 support. It is crucial for Bitcoin to maintain above the $80,000 zone in order to prevent further losses in the near term.
The recent decline in Bitcoin’s price began from the $86,500 zone. At present, it is trading below $82,500, well under the 100 hourly Simple Moving Average. The hourly chart of the Bitcoin/USD pair, based on data from Kraken, displays a connecting bearish trend line with a resistance at $83,800. If Bitcoin fails to retain above the $85,000 zone, it is likely to face another decline.
Bitcoin’s price took a sharp plunge from the $88,500 level, falling significantly below the $86,500 and $85,000 support levels. It even dropped below the $82,000 level, testing the $80,000 zone. The price hit a low at $80,000 and is currently in a phase of consolidating losses. There are clear indications of bearish signs below the 23.6% Fib retracement level of the downward wave from the $86,934 swing high to the $80,000 low.
Currently, Bitcoin price is trading below $82,200 and the 100 hourly Simple Moving Average. On the upside, the immediate resistance is near the $81,650 level. The first major resistance is close to the $83,500 level or the 50% Fib retracement level of the downward wave from the $86,934 swing high to the $80,000 low.
Furthermore, there is a connecting bearish trend line with resistance at $83,800 on the hourly chart of the Bitcoin/USD pair. The resistance following that could be $85,000. If the price manages to close above the $85,000 resistance, it could potentially drive the price even higher. In such a scenario, the price could rise and test the $86,500 resistance level. Any further gains might propel the price towards the $88,000 level or even $88,500.
However, if Bitcoin fails to surpass the $85,000 resistance zone, it could face a fresh decline. Immediate support on the downside is near the $80,000 level, followed by a major support near the $78,500 level. The next support is close to the $76,200 zone. If the price suffers further losses, it might steer the price towards the $75,000 support in the near term. The main support is stationed at $73,500.
Technical indicators suggest a bearish outlook as well. The MACD is now gaining pace in the bearish zone. The RSI for Bitcoin/USD is now below the 50 level, indicating a bearish momentum. Bitcoin’s major support levels lie at $80,000, and $78,500, with significant resistance levels at $83,800 and $85,000.
