Bitcoin Price Holds Steady After Drop—Is a Rebound Coming?

Bitcoin price started a fresh decline below the $90,000 zone. BTC is back below $88,500 and might struggle to regain bullish momentum.

• Bitcoin started a fresh decline below the $92,000 zone.

• The price is trading below $90,000 and the 100 hourly Simple moving average.

• There is a connecting bearish trend line forming with resistance at $91,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).

• The pair could start another decline if it fails to stay above the $85,000 zone.

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Bitcoin Price Faces Resistance

Bitcoin price started a fresh decline from the $95,000 resistance level. BTC traded below the $92,000 and $90,000 support levels. The price dived over 10% and traded below the $88,000 support zone.

There was a clear move below the 50% Fib retracement level of the upward wave from the $84,500 swing low to the $95,000 high. Finally, the price tested the $82,000 support zone. A base was formed and the price is now recovering some losses above the $83,500 level.

Bitcoin price is now trading below $90,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $88,750 level. The first key resistance is near the $90,000 level.

The next key resistance could be $91,500. There is also a connecting bearish trend line forming with resistance at $91,000 on the hourly chart of the BTC/USD pair. A close above the $91,500 resistance might send the price further higher. In the stated case, the price could rise and test the $93,000 resistance level. Any more gains might send the price toward the $94,200 level or even $95,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $90,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $85,000 level. The first major support is near the $83,200 level.

The next support is now near the $82,250 zone and the 76.4% Fib retracement level of the upward wave from the $84,500 swing low to the $95,000 high. Any more losses might send the price toward the $80,000 support in the near term. The main support sits at $78,800.

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 above the 50 level.

Major Support Levels – $85,000, followed by $82,250.

Major Resistance Levels – $90,000 and $91,500.