Bitcoin Price Recovery In Play—But Major Hurdles Loom Large

Bitcoin price started a fresh decline below the $80,000 zone. BTC is now correcting losses and might face resistance near the $80,500 zone.

  • Bitcoin started a fresh decline below the $80,000 zone.
  • The price is trading below $81,500 and the 100 hourly Simple moving average.
  • There is a connecting bearish trend line forming with resistance at $80,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it clears the $81,500 zone.

Bitcoin Price Starts Recovery

Bitcoin price started a fresh decline below the $82,000 and $81,200 levels. BTC traded below the $80,500 and $80,000 levels to enter a bearish zone.

The price even dived below the $78,000 support zone. A low was formed at $74,409 and the price started a recovery wave. There was a move above the $76,800 level. The price climbed above the 50% Fib retracement level of the recent decline from the $83,680 swing high to the $74,409 low.

However, the price is struggling to continue higher. Bitcoin price is now trading below $81,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $80,400 level. There is also a connecting bearish trend line forming with resistance at $80,400 on the hourly chart of the BTC/USD pair.

Bitcoin Price Recovery In Play—But Major Hurdles Loom Large

The first key resistance is near the $81,500 level or the 76.4% Fib retracement level of the recent decline from the $83,680 swing high to the $74,409 low. The next key resistance could be $82,500. A close above the $82,500 resistance might send the price further higher. In the stated case, the price could rise and test the $83,500 resistance level. Any more gains might send the price toward the $85,000 level.

Another Decline In BTC?

If Bitcoin fails to rise above the $80,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $79,500 level. The first major support is near the $78,000 level.

The next support is now near the $76,500 zone. Any more losses might send the price toward the $75,000 support in the near term. The main support sits at $74,400.

Technical indicators:

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

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

Major Support Levels – $79,500, followed by $78,000.

Major Resistance Levels – $80,500 and $81,500.