Bitcoin Holds Key Support, Though Reclaiming Upside May Prove Challenging

[Ben Graham]

Bitcoin price started a fresh decline below $88,000. BTC is now attempting to recover but upside might face hurdles near $88,000.

• Bitcoin started a fresh decline below the $88,000 zone.
• The price is trading below $87,500 and the 100 hourly Simple moving average.
• There was a break above a short-term bearish trend line with resistance at $86,000 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 $85,500 zone.

Bitcoin Price Attempts Recovery

Bitcoin price failed to stay above the $90,000 zone and started a fresh decline. BTC dipped sharply below $88,500 and $88,000. The bears even pushed the price below the $86,500 level.

A low was formed at $83,870 and the price is now correcting losses. There was a move above the $85,000 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $91,928 swing high to the $83,870 low.

Besides, there was a break above a short-term bearish trend line with resistance at $86,000 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $88,000 and the 100 hourly Simple moving average.

If the bulls remain in action, the price could attempt another increase. Immediate resistance is near the $87,250 level. The first key resistance is near the $88,000 level or the 50% Fib retracement level of the downward move from the $91,928 swing high to the $83,870 low.

The next resistance could be $88,500. A close above the $88,500 resistance might send the price further higher. In the stated case, the price could rise and test the $90,000 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.

Another Decline In BTC?

If Bitcoin fails to rise above the $88,000 resistance zone, it could start another decline. Immediate support is near the $85,500 level. The first major support is near the $85,000 level.

The next support is now near the $83,500 zone. Any more losses might send the price toward the $82,500 support in the near term. The main support sits at $81,200, below which BTC might accelerate lower in the near term.

Technical indicators:

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

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

Major Support Levels – $85,500, followed by $85,000.

Major Resistance Levels – $87,250 and $88,000.