Bitcoin Price Dips Below $88,000 Support, BTC Must Stay Above $80,000

Bitcoin price failed to stay above the $92,500 level and started a fresh decline. BTC declined heavily below the $90,000 and $88,000 support levels.

Bitcoin price is showing signs of a recovery above the $81,000 level against the U.S. Dollar. BTC is trading in a key bearish trend line and it might continue to rise.

Bitcoin price is continuing to trade in a bear market despite the recent price action. The BTC/USD pair is showing signs of a recovery above the $81,000 level. It seems like the price is setting the stage for more gains in the near term.

Bitcoin Price Still in A Bear Market

After a major decline, bitcoin price finally showed signs of recovery above the $78,500 support. The price even tested the $89,203 high, setting the stage for a steeper decline.

The bear market is far from over, and we might see more lows in the coming months. However, the recent price action might create an interesting trading opportunity for traders.

Recently, there was a key bearish trend line forming with resistance at $86,150 on the 4-hour chart of BTC/USD. The trend line is valid on the chart since August 2023.

The price also remained in a Fib retracement level, which provided support at $81,200. The Fib level is calculated by taking the last swing high of $89,203 and the swing low of $80,525.

Buyers managed to push the price above the trend line and the Fib level, setting the stage for a steeper recovery. The price is now trading above the 100 Simple moving average (SMA) (hourly time-frame).

The next resistance is at $83,000, which could be reached if the bulls manage to break through the Fib level, currently at $83,500.

If the price rises above the Fib level, it could continue to move up. The next resistance might be at the 50% Fib retracement level of the downward move from the $89,203 swing high to the $80,525 low, currently at $85,000.

The first major resistance is at $85,500, which could be reached if the bulls manage to break through the Fib level, currently at $83,500.

There is also a connecting bearish trend line forming with resistance at $86,150 on the hourly chart of the BTC/USD pair. The price might face strong resistance near the trend line.

The next key resistance is at $87,150. A close above the $87,150 resistance might send the price further higher. In the stated case, the price could rise and test the $88,500 resistance level.

Any more gains might send the price towards the $90,000 level or even $90,500.

The main support on the downside is at the Fib level of $81,200. The next major support is at $80,000, which could be reached if the price breaks below the Fib level.

The next support is now near the $81,200 zone. Any more losses might send the price towards the $80,000 support in the near term. The main support sits at $78,500.

Technical indicators:

Hourly MACD - The MACD is now losing pace in the bearish zone.

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

Major Support Levels - $82,000, followed by $80,000.

Major Resistance Levels - $85,000 and $86,000.