Bitcoin price started a new decline from the $79,500 zone. BTC is consolidating and could struggle to stay above the USD 76,500 support.
- Bitcoin failed to stay above $78,500 and corrected gains.
- The price is trading below $78,000 and the 100 hourly moving average.
- A connecting bearish trendline is forming with resistance at $77,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend losses if it remains below the USD 77,600 and USD 78,000 levels.
Bitcoin price drops again
Bitcoin price failed to stay above the USD 78,500 resistance zone. BTC reached a high of almost $79,500 and started a new decline. There was a move below the $78,000 level.
The price fell below the $77,500 and $77,000 levels. A low was formed at $76,480 and the price is now consolidating losses. There was a small increase above the 23.6% Fib retracement level on the downward move from the $79,481 swing high to the $76,480 low.
Bitcoin is now trading below $78,000 and the 100 hourly moving average. If the price remains stable above $76,500, another move up could be attempted. Immediate resistance is near the $77,300 level.
The first major resistance is near the $77,600 level. A connecting bearish trendline is also forming with resistance at $77,600 on the hourly chart of the BTC/USD pair. A close above the resistance at $77,600 could send the price higher.
In the said case, the price could rise and test the $78,000 resistance and the 50% Fib retracement level of the downward move from the $79,481 swing high to the $76,480 low. Any further gains could send the price towards the USD 78,500 level. The next threshold for the bulls could be $78,800.
Disadvantage of continuation in BTC?
If Bitcoin fails to rise above the USD 77,600 resistance zone, it could trigger another decline. The immediate support is near the $76,750 level.
The first major support is near the $76,500 level. The next support is now near the $75,500 zone. Any further losses could send the price towards the USD 74,200 support in the near term. The key support now lies at $73,500, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 76,500, followed by USD 75,500.
Major resistance levels – $77,600 and $78,000.