Bitcoin (BTC) has experienced another significant decline, dropping below $85,000 as bearish momentum intensifies. The leading cryptocurrency tested the $80,000 support level and now faces resistance at $83,000 and $85,000, according to data from Kraken.
Bitcoin Faces Strong Resistance at $83,000
After reaching a high of $92,000, Bitcoin started a downward trend, falling below $86,000 and $85,000. The recent price action has left BTC trading under the 100-hour Simple Moving Average (SMA), indicating continued bearish pressure.
BTC formed a low at $80,006 before attempting a recovery. The 23.6% Fibonacci retracement level of the downward move from $91,060 to $80,006 was tested, but BTC is now struggling to break the $83,000 resistance level.
Read Also: Trump’s Bitcoin Reserve Plan: US Gov May Liquidate Crypto Holdings for 5,000 BTC
A bearish trend line is forming at $83,200 on the BTC/USD hourly chart, creating a significant hurdle for bulls. The key resistance levels BTC needs to clear for a sustained recovery are:
- $83,000 – Short-term barrier with a bearish trend line
- $85,000 – 50% Fibonacci retracement level of the recent drop
- $87,500 – A break above could open the door for a rally to $90,000 or even $96,200
Will Bitcoin Drop Below $80K? Key Support Levels to Watch
If BTC fails to break above $83,000, another downward move is likely. The immediate support levels to watch include:
- $81,000 – Short-term safety zone for bulls
- $80,200 – First major support level
- $80,000 – Critical psychological support
A break below $80,000 could trigger a deeper correction toward $78,000 or even $75,000, which is considered major long-term support.
Technical Indicators Signal Bearish Momentum
- MACD – The hourly MACD is losing momentum in the bearish zone
- RSI – The BTC/USD Relative Strength Index (RSI) remains below 50, signaling weak buying interest
What’s Next for Bitcoin?
As Bitcoin navigates this volatile phase, traders should watch for a decisive move above $83,000 or a break below $80,000, which could determine BTC’s next big move. With increasing macroeconomic uncertainty and market speculation, BTC remains at a crossroads between recovery and further decline.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions.
