Bitcoin Price Rejection Sparks Bearish Pressure—Support Under Threat?

[Ben Graham]

Bitcoin price attempted to start a fresh increase but failed at $90,000. BTC is now consolidating and might struggle to clear the $88,000 zone.

• Bitcoin started a fresh decline below the $87,000 zone.
• The price is trading below $87,500 and the 100 hourly Simple moving average.
• There was a break below a bullish trend line with support at $86,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move up if it settles above the $87,500 zone.

Bitcoin Price Consolidates Losses

Bitcoin price attempted a fresh surge above $88,000 and $88,500. BTC tested the $90,000 resistance zone and reacted to the downside. There was a sharp decline below $88,000.

There was a break below a bullish trend line with support at $86,450 on the hourly chart of the BTC/USD pair. The price even spiked below the $86,000 support. However, the bulls were active near the $85,250 zone. A low was formed at $85,282 and the price recently started an upside correction. There was a move above the 23.6% Fib retracement level of the downward move from the $90,318 swing high to the $85,282 low.

The bears are active near $87,000. Bitcoin is now trading below $87,000 and the 100 hourly Simple moving average. If the bulls remain in action, the price could attempt more gains. Immediate resistance is near the $86,800 level. The first key resistance is near the $87,350 level.

The next resistance could be $87,800 or the 50% Fib retracement level of the downward move from the $90,318 swing high to the $85,282 low. A close above the $87,800 resistance might send the price further higher. In the stated case, the price could rise and test the $88,000 resistance. Any more gains might send the price toward the $89,200 level. The next barrier for the bulls could be $90,000 and $90,500.

Another Drop In BTC?

If Bitcoin fails to rise above the $87,800 resistance zone, it could start another decline. Immediate support is near the $85,500 level. The first major support is near the $85,250 level.

The next support is now near the $85,000 zone. Any more losses might send the price toward the $84,200 support in the near term. The main support sits at $83,500, 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 below the 50 level.

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

Major Resistance Levels – $87,800 and $88,000.