Bitcoin Price Faces Further Weakness, More Declines Possible

Bitcoin's price has not managed to maintain its upward trajectory, slipping below $88,500. The cryptocurrency is now in decline, and it may find it challenging to stay above the $86,800 threshold.

Key Takeaways

Bitcoin has initiated a new decline from the $90,500 region.
The current price is trading below $88,000 and the 100-hour simple moving average.
A bearish trend line is forming, presenting resistance at $87,650 on the hourly BTC/USD chart (data feed from Kraken).
If the price drops below $86,800, further declines may occur.

Bitcoin Price Weakens Further

Bitcoin Price Correction in Progress

Bitcoin's price has struggled to remain positive and has recently dropped below the $90,000 marker. It has fallen past both the $89,500 and $88,500 levels, entering a bearish zone.

The bears successfully pushed the price beneath the 50% Fibonacci retracement level, measured from the $84,420 swing low to the $90,552 high. Additionally, a bearish trend line is taking shape, which shows resistance at the $87,650 mark on the hourly chart for the BTC/USD pair.

Currently, Bitcoin is trading below $88,000 and the 100-hour simple moving average. If the price can sustain itself above $87,000, it might initiate a recovery. The immediate resistance level lies around $87,650 with the trend line also acting as a barrier.

Bitcoin Price Source: BTCUSD on TradingView.com

The initial significant resistance is located at around $88,500. Following that, the next resistance point could be at $89,100. If it manages to close above the $89,100 resistance, the price could continue to rise. In that scenario, Bitcoin could test the $90,000 resistance. Should it make further gains, it may reach up to $90,500, with the next bullish hurdles being at $91,500 and $92,000.

Potential for Additional Losses in BTC?

If Bitcoin is unable to surpass the $88,500 resistance level, it may start another downward movement. The immediate support area is around $87,000, while major support is close to the $86,750 level, corresponding with the 61.8% Fibonacci retracement level of the upward movement from the $84,420 swing low to the $90,552 high.

The next level of support is now situated near $86,000. Any additional declines could bring the price down to around $85,450 in the short term. The primary support level is at $84,500, below which Bitcoin could face a swift decline.

Technical Indicators

Hourly MACD: The MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently below the 50 threshold.
Major Support Levels: $86,750 followed by $86,000.
Major Resistance Levels: $87,650 and $88,500.