Bitcoin (BTC) continues to show signs of weakness after its latest plunge below key support levels. As per the data feed from Kraken, the leading cryptocurrency dropped below the crucial $78,000 and $77,000 zones, reaching a new local low of $74,475 before rebounding slightly.
Currently, BTC is trading under $78,200 and remains below the 100-hourly Simple Moving Average, signaling ongoing bearish pressure. The decline started after failing to sustain gains above $80,000 and $79,500, pushing Bitcoin firmly into a bearish zone.
Resistance Builds as BTC Tries to Rebound
Bitcoin is now facing immediate resistance at $77,800, which aligns with the 50% Fibonacci retracement level of the recent drop from the $80,800 swing high to the $74,475 low. The key resistance level remains at $78,500, with an additional barrier forming near $79,500, marked by a descending trendline.
If BTC manages a strong close above $79,500, it could ignite a fresh rally toward $81,500 and possibly retest the $82,000 level. However, failure to break above these levels could set the stage for another downward leg.
Bearish Scenario: $70K Support at Risk
If Bitcoin cannot breach the $78,500 resistance zone, another drop appears likely. Initial support lies around $75,750, followed by a more substantial floor at $74,750.
Should sellers gain more ground, the next support areas are seen at $73,500 and then $72,000. The final key defense remains at $70,000—a level that could determine whether BTC enters a deeper bearish phase.
Technical Indicators Signal Weakness
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MACD (Hourly): Gaining strength in the bearish zone.
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RSI (Hourly): Below 50, indicating sellers are in control.
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Major Support Levels: $75,750, $74,750, $73,500
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Major Resistance Levels: $78,500, $79,500
With momentum indicators and price structure both pointing to continued selling pressure, traders are closely watching whether Bitcoin can reclaim key resistances or break down toward $70K.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
