Bitcoin Price Sees 10% Decline, Raising Concerns Over $80,000 Support

Bitcoin's price has dropped significantly below $86,500, with nearly a 10% decline, and may soon test its $80,000 support level.

Key Takeaways

Bitcoin has dropped below the critical $86,500 level, signaling a potential downturn.
Currently trading above $85,000, it maintains a position above the 100-hour simple moving average.
A bearish trend line has formed with resistance positioned at $83,200 based on the hourly chart for the BTC/USD pair (data sourced from Kraken).
Continued decline could occur if trading dips below the $81,000 and $80,000 thresholds.

Bitcoin Price 10% Tumble

Bitcoin Price Declines Again

Bitcoin's price was unable to hold above the $88,000 mark, initiating a significant retreat below $87,200 and $86,500. The selling pressure pushed the price below $85,000, resulting in a substantial drop below $82,000, with a low recorded at $81,000. Current trends suggest further potential declines may arise. Additionally, a bearish trend line with resistance at $83,200 appears on the hourly BTC/USD chart.

At present, Bitcoin is trading below the $83,200 mark and the 100-hour simple moving average. If the price can stay steady above $80,000, it might aim for another increase. An immediate resistance level is found near $82,000, followed closely by the first key resistance around $83,200, which corresponds to the 23.6% Fibonacci retracement level of the price drop from the $90,438 peak to the $81,000 low.

Bitcoin Price
Source: BTCUSD on TradingView.com

A close above the $83,200 resistance could propel the price higher, potentially testing the $85,000 resistance level. Further gains might lead to a rise towards the $85,700 mark, which represents the 50% Fibonacci retracement level of the drop from the $90,438 swing high to the $81,000 low. Subsequent resistance for bullish movements may be found at $87,000 and $87,500.

Will Bitcoin Experience More Losses?

Should Bitcoin fail to break through the $83,200 resistance region, it may face another downturn. Immediate support is detected around the $81,000 mark, with major support nearby at $80,500. The next crucial support level sits at $80,000. Any further losses could push the price down to the $77,000 support level in the short term, while the main support stands at $75,000, below which Bitcoin may struggle to bounce back.

Technical Indicators

Hourly MACD: The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dropped below the 50 level.
Major Support Levels: $81,000 and $80,000.
Major Resistance Levels: $82,000 and $83,200.