Could a Deeper Drop Be Ahead?
Bitcoin price failed to break above $95,500 and fell again. BTC is back below $94,500 and may revisit the $91,200 support area.
- Bitcoin started a fresh decline from the $96,500 area.
- The price is trading below $95,500 and the 100 hourly simple moving average.
- There is a bearish trend line connecting with resistance at $94,000 on the hourly chart of the BTC/USD pair (data via Kraken).
- If the pair holds above the $92,500 support area, another upward move could start.
Bitcoin price drops again
Bitcoin price starts at $93,500 Resistance Zone. BTC was able to climb above the $94,200 and $94,500 resistance levels.
The pair broke the $95,000 resistance, but upside was limited. The price started declining again and fell below the $93,500 level. A low was formed at $92,950 and the price is now consolidating losses. There is a bearish trend line forming with resistance at $94,000 on the hourly chart of the BTC/USD pair.
The trend line is near the 23.6% Fib retracement level of the recent swing high from $97,308 to $92,950 low. Bitcoin price currently below $95,000 100 hour simple moving average.
On the upside, immediate resistance lies near $94,000. The first key resistance level is near the $95,000 level, which is the 50% Fib retracement level of the recent swing high of $97,308 to low of $92,950. A clear break above the $95,000 resistance could lead to a move higher.
The next key resistance level is likely to be $95,500. A close above the $95,500 resistance could lead to further gains. In the above scenario, the price may rise and test the $96,500 resistance. In case of further gains, the price may rise towards the $98,000 level.
More Bitcoin losses?
If Bitcoin fails to rise above the $94,500 resistance zone, it may continue to fall. Immediate support on the downside lies near the $93,500 level.
The first major support level is located near $92,800. The next support is near the $92,500 area. Any further losses could push the price towards the $91,200 support in the short term.
Technical indicators:
Hourly MACD – The MACD is currently accelerating in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
The main support is at $93,500, followed by $92,500.
Major resistance levels – $94,500 and $95,500.
