Bitcoin Holds The Line—But Can It Bounce Back or Break Lower?

Bitcoin price started a fresh increase above the $80,000 zone. BTC is now correcting gains and might struggle to stay above the $79,500 support.

Bitcoin started a fresh increase above the $80,000 zone.
The price is trading above $79,500 and the 100 hourly Simple moving average.
There is a new connecting bearish trend line forming with resistance at $80,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $80,500 zone.

Bitcoin Price Dips Again

Bitcoin price started a fresh increase above the $77,500 zone. BTC formed a base and gained pace for a move above the $79,500 and $80,000 resistance levels.

The bulls pumped the price above the $82,500 resistance. A high was formed at $83,548 and the price recently started a downside correction. There was a move below the $81,500 support. The price dipped below the 23.6% Fib retracement level of the upward move from the $74,572 swing low to the $83,548 high.

Bitcoin price is now trading above $79,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $80,500 level. There is also a new connecting bearish trend line forming with resistance at $80,500 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $81,500 level. The next key resistance could be $82,500. A close above the $82,500 resistance might send the price further higher. In the stated case, the price could rise and test the $83,500 resistance level. Any more gains might send the price toward the $85,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $80,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $79,500 level. The first major support is near the $79,000 level and the 50% Fib retracement level of the upward move from the $74,572 swing low to the $83,548 high.

The next support is now near the $78,000 zone. Any more losses might send the price toward the $76,500 support in the near term. The main support sits at $75,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $79,500, followed by $79,000.

Major Resistance Levels – $80,500 and $81,500.

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