Bitcoin Price Retests Support—Is the Market Bracing for Volatility?

[Ben Graham]

Bitcoin price attempted to start a fresh increase but failed at $89,500. BTC is now struggling below $86,500 and might continue to move down.

• Bitcoin started a fresh decline below the $86,500 zone.
• The price is trading below $86,500 and the 100 hourly Simple moving average.
• There was a break below a bullish trend line with support at $87,250 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 $85,000 zone.

Bitcoin Price Dips Again

Bitcoin price attempted a fresh recovery wave above $88,000 and $88,500. BTC tested the $89,500 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 $87,250 on the hourly chart of the BTC/USD pair. The price even spiked below the $85,000 support. However, the bulls were active near the $84,500 zone. A low was formed at $84,421 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $89,437 swing high to the $84,421 low.

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 $86,600 level. The first key resistance is near the $87,000 level and the 50% Fib retracement level of the downward move from the $89,437 swing high to the $84,421 low.

The next resistance could be $88,000. A close above the $88,000 resistance might send the price further higher. In the stated case, the price could rise and test the $88,800 resistance. Any more gains might send the price toward the $89,500 level. The next barrier for the bulls could be $90,000 and $90,500.

More Losses In BTC?

If Bitcoin fails to rise above the $87,000 resistance zone, it could start another decline. Immediate support is near the $85,000 level. The first major support is near the $84,500 level.

The next support is now near the $83,200 zone. Any more losses might send the price toward the $82,500 support in the near term. The main support sits at $80,500, 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 – $85,000, followed by $84,500.

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