Bitcoin price started a big decline below $86,500. BTC is down almost 10% and could soon test the $80,000 support zone.
- Bitcoin failed to stay above $86,500 and started falling again.
- The price is trading above $85,000 and the 100 hourly moving average.
- A bearish trendline is forming with resistance at $83,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could fall further if it trades below the $81,000 and $80,000 levels.
Bitcoin price drops again
Bitcoin price failed to hold higher above the $88,000 zone. BTC started a major decline below the USD 87,200 and USD 86,500 levels. The bears managed to push the price below $85,000.
It spared major bearish moves and pushed the price below $82,000. A low formed at $81,000 and the price continues to signal more downside. A bearish trendline is also forming with resistance at $83,200 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading below $83,200 and the 100 hourly moving average. If the price remains stable above $80,000, another increase can be attempted. The immediate resistance is near the $82,000 level. The first major resistance is near the $83,200 level or the 23.6% Fib retracement level of the downward move from the $90,438 swing high to the $81,000 low.
A close above the resistance at $83,200 could send the price rising further. In the mentioned case, the price could rise and test the USD 85,000 resistance. Any further gains could send the price towards the $85,700 level or towards the 50% Fib retracement level of the downward move from the $90,438 swing high to the $81,000 low. The next barrier for the bulls could be $87,000 and $87,500.
Lose more in BTC?
If Bitcoin fails to rise above the USD 83,200 resistance zone, it could trigger another decline. Immediate support is near the $81,000 level. The first major support is near the $80,500 level.
The next support is now near the $80,000 zone. Any further losses could send the price towards the $77,000 support in the short term. The key support is at $75,000, 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 81,000, followed by USD 80,000.
Major resistance levels – $82,000 and $83,200.