Bitcoin Price Plunges 10%, Threatening the Crucial $80,000 Mark
Bitcoin has experienced a significant downturn, shedding nearly 10% of its value and sparking concerns among investors as it approaches the critical $80,000 support zone. The cryptocurrency failed to sustain its position above the $86,500 level, triggering a bearish trend that could dictate its short-term trajectory.
The Recent Dip and Bearish Momentum
After failing to surpass the $88,000 resistance, Bitcoin initiated a notable decline, breaching key levels including $87,200, $86,500, and $85,000. This downward momentum saw the price pushed below $82,000, reaching a low of $81,000. Technical analysis reveals a bearish trend line forming on the hourly chart, with strong resistance identified around $83,200. The 100 hourly simple moving average also indicates a prevailing bearish sentiment, with the price currently trading beneath it. The Hourly MACD is accelerating its pace in the bearish zone, and the Relative Strength Index (RSI) for BTC/USD is now below the 50 level, reinforcing the bearish outlook.
Navigating Key Support and Resistance Levels
Should Bitcoin fail to reclaim the $83,200 resistance zone, further declines are anticipated. Immediate support is found near $81,000, with the first major support sitting at $80,500, followed closely by the psychological $80,000 mark. A breakdown below this level could send the price tumbling towards $77,000, with the ultimate main support positioned at $75,000. Conversely, a potential recovery hinges on the price stabilizing above $80,000, which could ignite a fresh upward movement. Key resistance points for such a rally include $82,000, and particularly $83,200, which aligns with the 23.6% Fibonacci retracement level of the recent downward swing from $90,438 to $81,000. Overcoming these barriers could pave the way for testing $85,000, followed by $85,700 (50% Fib retracement), and potentially even $87,000 or $87,500.
