Bitcoin Price Dives Once More—Is a Deeper Correction Underway?

Bitcoin price started a fresh decline from the $92,000 zone. BTC is back below $85,500 and might continue to move down below $80,000.

• Bitcoin started a fresh decline below the $85,000 zone.
• The price is trading below $85,000 and the 100 hourly Simple moving average.
• There is a short-term bearish trend line forming with resistance at $83,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another decline if it fails to clear the $80,000 resistance zone.

Bitcoin Price Faces Resistance

Bitcoin price started a fresh decline below the $88,000 level. BTC traded below the $86,000 and $85,000 support levels. Finally, the price tested the $80,000 support zone.

A low was formed at $80,006 and the price recently started a recovery wave. There was a move above the $80,500 and $81,200 resistance levels. The bulls pushed the price toward the 23.6% Fib retracement level of the downward move from the $91,060 swing high to the $80,006 low.

Bitcoin price is now trading below $85,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $82,700 level. The first key resistance is near the $83,000 level.

There is also a short-term bearish trend line forming with resistance at $83,200 on the hourly chart of the BTC/USD pair. The next key resistance could be $85,000. It is near the 50% Fib retracement level of the downward move from the $91,060 swing high to the $80,006 low.

A close above the $85,000 resistance might send the price further higher. In the stated case, the price could rise and test the $87,500 resistance level. Any more gains might send the price toward the $90,000 level or even $96,200.

Another Decline In BTC?

If Bitcoin fails to rise above the $83,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $81,000 level. The first major support is near the $80,200 level.

The next support is now near the $80,000 zone. Any more losses might send the price toward the $78,000 support in the near term. The main support sits at $75,000.

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 – $80,000, followed by $78,000.

Major Resistance Levels – $83,000 and $85,000.