Bitcoin Collapse Accelerates as Gains Vanish and Sellers Take Full Control

[Ben Graham]

Bitcoin price started a fresh decline from $92,000. BTC is down over 5% and the bulls are struggling to keep the price above $86,500.

• Bitcoin started a fresh decline below the $90,000 zone.
• The price is trading below $88,000 and the 100 hourly Simple moving average.
• There was a break below a key bullish trend line with support at $89,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it settles below the $86,500 zone.

Bitcoin Price Dips Again

Bitcoin price failed to settle above the $92,000 resistance zone and started a fresh decline. BTC dipped sharply below $90,500 and $90,000.

There was a break below a key bullish trend line with support at $89,500 on the hourly chart of the BTC/USD pair. The pair even spiked below $87,500. A low was formed at $86,500 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $91,928 swing high to the $86,500 low.

Bitcoin is now trading below $90,000 and the 100 hourly Simple moving average. If the bulls remain in action, the price could attempt another increase. Immediate resistance is near the $87,850 level. The first key resistance is near the $89,200 level or the 50% Fib retracement level of the downward move from the $91,928 swing high to the $86,500 low.

The next resistance could be $89,500. A close above the $89,500 resistance might send the price further higher. In the stated case, the price could rise and test the $90,650 resistance. Any more gains might send the price toward the $91,500 level. The next barrier for the bulls could be $92,000 and $92,500.

More Losses In BTC?

If Bitcoin fails to rise above the $87,800 resistance zone, it could start another decline. Immediate support is near the $86,500 level. The first major support is near the $86,000 level.

The next support is now near the $85,500 zone. Any more losses might send the price toward the $83,500 support in the near term. The main support sits at $82,200, below which BTC might accelerate lower in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $86,500, followed by $86,000.

Major Resistance Levels – $87,800 and $89,200.