As the week progresses, Bitcoin price seems to be caught in the throes of a downtrend well below the $83,500 zone. The digital currency, often seen as a refuge during market turbulence, is now consolidating its position, although it appears to be struggling to recover above the pivotal $83,850 zone.
Earlier, Bitcoin had initiated a fresh descent below the $83,200 support zone. Subsequently, the price traded below $83,000, moving under the 100 hourly Simple moving average, a widely observed technical indicator. This trend indicates a potentially bearish outlook for the cryptocurrency.
Adding to this is the development of a connecting bullish trend line, currently forming with support pegged at $82,550 on the hourly chart of the BTC/USD pair, as per data from Kraken. The pair now faces the risk of another decline if it remains below the $83,850 resistance zone.
Bitcoin’s price had previously failed to initiate a recovery wave above the $85,500 level. This failure sparked another downward movement, sliding further below the support area at $83,500, and giving the bears an upper hand to push the price below the $82,500 support zone.
Notably, the price declined further, dipping below $82,000, hitting a low at $81,320 before a recovery wave could take place. Afterward, there was a resurgence above the $82,500 level, but the bears remained active near $83,850, pushing the price into a consolidation phase.
Currently, Bitcoin price is trading below $83,250 and the 100 hourly Simple moving average. On the upside, immediate resistance lies near the $83,250 level. The first significant resistance is situated near the $83,850 level, with the subsequent key resistance potentially at $84,200.
Speculations abound that a close above the $84,200 resistance might propel the price further north. In that scenario, the price could escalate to touch the $84,800 resistance level, with the potential for more gains pushing the price towards the $85,000, or even $85,500.
However, if Bitcoin fails to break the $83,850 resistance zone, it could trigger a new downtrend. Immediate support on the downside is near the $82,550 level. The first major support lies near the $82,250 level and the 61.8% Fib retracement level of the upward move from the $81,320 swing low to the $83,870 high.
Further support resides near the $81,250 zone. Any more losses might drive the price towards the $80,000 support in the near term, with the primary support sitting at $78,500.
Technical indicators point towards a cautious outlook. The hourly MACD is losing pace in the bearish zone, while the hourly RSI for BTC/USD is now below the 50 level. Major support levels are positioned at $82,250 and $81,250, with the significant resistance levels at $83,250 and $83,850.
