Bitcoin’s price has entered a sharp bearish phase, plummeting below multiple critical support levels and threatening further downside. This comprehensive analysis examines the technical indicators and potential price targets as BTC tests crucial support at $77,000.
As highlighted in our recent article Bitcoin Price Shows Strong Buy Signal at $81K Support Level, the leading cryptocurrency has been showing signs of weakness after failing to maintain support above $83,500.
Key Technical Developments
- Price broke below the critical bullish trend line at $83,000
- BTC/USD pair trading well below the 100-hour Simple Moving Average
- Formation of a local bottom at $77,057
- 23.6% Fibonacci retracement level breached during recovery attempt
Critical Support and Resistance Levels
The current price action has established several key levels traders should monitor:
| Support Levels | Resistance Levels |
|---|---|
| $77,500 | $80,000 |
| $77,000 | $80,500 |
| $76,500 | $81,500 |
| $75,000 | $82,500 |
| $74,200 | $83,500 |
Technical Indicators Signal Bearish Momentum
The technical outlook shows increasing bearish pressure:
- MACD: Gaining momentum in the bearish zone
- RSI: Trading below 50, indicating bearish control
- Price-MA Relationship: Trading well below 100-hour SMA
Potential Recovery Scenarios
For bulls to regain control, Bitcoin needs to:
- Reclaim the $80,500 resistance level
- Break above the 50% Fibonacci retracement level
- Establish support above $81,500
FAQ
What caused Bitcoin’s recent price crash?
The decline appears technical in nature, triggered by a break below key support levels and accelerated by leveraged positions liquidations.
Could Bitcoin fall below $75,000?
While possible, strong support exists at $74,200. A break below this level could trigger further selling pressure.
What are the key levels to watch for recovery?
The immediate resistance at $80,500 is crucial. Breaking above this level could signal a trend reversal.
Traders should maintain strict risk management as volatility remains elevated. The next 24-48 hours will be critical in determining whether Bitcoin can establish support at current levels or if further downside is likely.