Bitcoin Price on The Brink? Signs Point to Renewed Decline

Bitcoin price started a fresh decline from the $86,500 zone. BTC is now consolidating and might continue to decline below the $83,200 support.

Bitcoin started a fresh decline from the $86,500 zone.
The price is trading below $85,000 and the 100 hourly Simple moving average.
There was a break below a connecting bullish trend line with support at $84,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $84,500 zone.

Bitcoin Price Faces Rejection

Bitcoin price started a fresh increase above the $83,500 zone. BTC formed a base and gained pace for a move above the $84,000 and $85,500 resistance levels.

The bulls pumped the price above the $86,000 resistance. A high was formed at $86,401 and the price recently corrected some gains. There was a move below the $85,000 support. Besides, there was a break below a connecting bullish trend line with support at $84,500 on the hourly chart of the BTC/USD pair.

The price tested the $83,200 support. Bitcoin price is now trading below $85,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $84,000 level and the 23.6% Fib retracement level of the downward move from the $86,401 swing high to the $83,171 low.

The first key resistance is near the $84,500 level. The next key resistance could be $84,750 and the 50% Fib retracement level of the downward move from the $86,401 swing high to the $83,171 low.

A close above the $84,750 resistance might send the price further higher. In the stated case, the price could rise and test the $85,500 resistance level. Any more gains might send the price toward the $86,400 level.

Another Decline In BTC?

If Bitcoin fails to rise above the $85,000 resistance zone, it could start another decline. Immediate support on the downside is near the $83,500 level. The first major support is near the $83,200 level.

The next support is now near the $82,200 zone. Any more losses might send the price toward the $81,500 support in the near term. The main support sits at $80,800.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $83,200, followed by $82,200.

Major Resistance Levels – $84,750 and $85,500.

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