Bitcoin Price Dips Sharply Below $85,000 Support, Must Stay Above $80,000

Bitcoin price failed to stay above the $88,500 level and started a fresh decline. BTC declined heavily below the $86,500 and $85,000 support levels.

Bitcoin price started a fresh decline after failing to gain any traction above the $88,500 resistance level. BTC/USD declined sharply below the $86,500, $85,000, and $82,000 support levels. The price even tested the $80,000 zone. A low was formed at $80,000 and the price is now consolidating losses. It is showing many bearish signs below the 23.6% Fib retracement level of the downward wave from the $86,934 swing high to the $80,000 low.

Bitcoin price is now trading below $82,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $81,650 level. The first key resistance is near the $83,500 level or the 50% Fib retracement level of the downward wave from the $86,934 swing high to the $80,000 low.

There is also a connecting bearish trend line forming with resistance at $83,800 on the hourly chart of the BTC/USD pair. The next key resistance could be $85,000. A close above the $85,000 resistance might send the price further higher. In the stated case, the price could rise and test the $86,500 resistance level. Any more gains might send the price toward the $88,000 level or even $88,500.

If Bitcoin fails to rise above the $85,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $80,000 level. The first major support is near the $78,500 level.

The next support is now near the $76,200 zone. Any more losses might send the price toward the $75,000 support in the near term. The main support sits at $73,500.

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 - $80,000, followed by $78,500.

Major Resistance Levels - $83,800 and $85,000.