Bitcoin Price Drops 5%—Is the Downtrend Back in Control?

Bitcoin price corrected gains and traded below the

Bitcoin Price Drops 5%—Is the Downtrend Back in Control?

Bitcoin Price Drops 5%—Is the Downtrend Back in Control?

Bitcoin price corrected gains and traded below the $88,000 support zone. BTC is now consolidating and might struggle to clear the $88,500 zone.

Source: BTCUSD on TradingView.com

The next resistance could be $88,000. A close above the $88,000 resistance might send the price further higher. In the stated case, the price could rise and test the $89,000 resistance. There is also a bearish trend line forming with resistance at $89,000 on the hourly chart of the BTC/USD pair. Any more gains might send the price toward the $90,000 level. The next barrier for the bulls could be $91,000 and $91,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $87,000 resistance zone, it could start another decline. Immediate support is near the $85,500 level. The first major support is near the $85,000 level.

The next support is now near the $83,500 zone. Any more losses might send the price toward the $82,500 support in the near term. The main support sits at $80,000, below which BTC might accelerate lower in the near term.

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 – $85,500, followed by $85,000.

Major Resistance Levels – $88,000 and $89,000.

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