Bitcoin (BTC) Started Its Sharp Decline by Breaking Below the $80,000 and $79,500 Levels

Bitcoin (BTC) started its sharp decline by breaking below the $80,000 and $79,500 levels, which marked the beginning of the bearish zone.

Bitcoin (BTC) began its sharp decline by breaking below the immediate resistance levels at $80,000 and $79,500, which marked the beginning of the bearish zone. This decline continued until BTC bottomed out at $74,475.

Afterward, Bitcoin (BTC) attempted to recover as it rebounded above the $75,500 zone. However, it is still trading below the 100-hour simple moving average, indicating that the selling pressure is still quite strong.

In other news, traders are keeping an eye on the global tariff tensions, which could trigger further volatility in Bitcoin (BTC) and other cryptocurrencies.

As of press time, BTC is trading at $77,800, showing signs of recovery from the recent lows.

Bitcoin Price Analysis: Immediate Resistance and Support Levels

In technical analysis, Bitcoin (BTC) faces immediate resistance at $77,800, which is the 50% Fibonacci retracement level of the last drop from $80,800 to $74,475. A break above this level could take Bitcoin (BTC) to the next resistance at $78,500.

However, there is a bearish trend line forming that could limit price gains at that level. If Bitcoin (BTC) manages to break this trend line, it will be a strong bullish signal.

On the downside, immediate support is at $75,750, followed by major support at $74,750. A drop below this could take Bitcoin (BTC) to the $73,500 zone, and if the selling pressure continues, the next target is $72,000.

Relative Strength Index (RSI)

The RSI in the four-hour time frame is showing some signs of oversold conditions, which could slow down further declines in the near term. However, the MACD in the same time frame is still in bearish territory, indicating that the selling pressure is still dominant.

Bitcoin (BTC) is in a state of high uncertainty as it trades below the 100-hour SMA and the 50% Fib level.

Potential Scenarios for Bitcoin

If Bitcoin (BTC) manages to break the $79,500 resistance, this could be a bullish signal that would push the price towards $81,500 and possibly up to $82,000. However, technical indicators such as MACD and RSI show that bearish momentum is still dominant, which could hamper any attempts at price recovery.

On the other hand, if Bitcoin (BTC) fails to break the 100-hour SMA and continues to trade below it, this could be a bearish signal that would open the door for further declines.

The support and resistance levels that have been identified are key to determining the next direction of Bitcoin (BTC). Investors and traders should monitor these levels closely to make the right investment decisions amidst volatile market conditions.