Bitcoin Price Weakens Further, Additional Losses Now on the Table

[Ben Graham]

Bitcoin price failed to continue higher and dipped below $88,500. BTC is now declining and might struggle to stay above $86,800.

• Bitcoin started a fresh decline from the $90,500 zone.
• The price is trading below $88,000 and the 100 hourly Simple moving average.
• There is a bearish trend line forming with resistance at $87,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might continue to move down if it trades below the $86,800 zone.

Bitcoin Price Corrects Gains

Bitcoin price failed to stay in a positive zone and started a fresh decline below $90,000. BTC dipped below $89,500 and $88,500 to move into a bearish zone.

The bears were able to push the price below the 50% Fib retracement level of the upward move from the $84,420 swing low to the $90,552 high. Besides, there is a bearish trend line forming with resistance at $87,650 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 price remains stable above $87,000, it could attempt a fresh recovery wave. Immediate resistance is near the $87,650 level and the trend line.

The first key resistance is near the $88,500 level. The next resistance could be $89,100. A close above the $89,100 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 $90,500 level. The next barrier for the bulls could be $91,500 and $92,000.

More Losses In BTC?

If Bitcoin fails to rise above the $88,500 resistance zone, it could start another decline. Immediate support is near the $87,000 level. The first major support is near the $86,750 level and the 61.8% Fib retracement level of the upward move from the $84,420 swing low to the $90,552 high.

The next support is now near the $86,000 zone. Any more losses might send the price toward the $85,450 support in the near term. The main support sits at $84,500, 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 – $86,750, followed by $86,000.

Major Resistance Levels – $87,650 and $88,500.