Bitcoin is consolidating above the $80,000 support zone. BTC could still bounce back unless there is a weekly close below $80,000.
Bitcoin Price Reaches Key Support
In the past few days, Bitcoin price saw a fresh decline below the $95,000 support zone. BTC bulls failed to push the price above $100,000 on more than two occasions, sparking a fresh decline. There was a move below the $92,000 and $90,000 support levels.
The bears were even able to push the price below the $88,000 and $85,000 levels. Finally, the price tested the 50% Fib retracement level of the upward move from the $49,130 swing low to the $109,590 high.
The weekly chart of BTC suggests the price is now consolidating above the key support at $80,000 and the 50-week simple moving average (blue). There is also a key contracting triangle forming with support at $79,500 on the same chart.
If the bulls remain active near the $80,000, there could be a recovery wave. Immediate resistance is visible near the $85,000 level. The first major resistance is near the $88,000 level. A clear move above the $88,000 level could set the pace for a test of the $90,000 level.
If the bulls succeed in clearing the $90,000 resistance, it could be a strong bullish signal. The next key resistance could be near the $95,000 level and the triangle’s upper trend line. Any more gains might send Bitcoin toward the $100,000 level.
More Losses In BTC?
If Bitcoin fails to clear the $88,000 resistance, it might continue to move down. Immediate support is near the $80,000 level. The first major support is near the $79,500. The next major support sits near the $75,000 level and the 50-week simple moving average (blue).
A weekly close below the $75,000 level and the 50-week simple moving average (blue) could start a larger downside correction. In the stated case, BTC could drop toward the $72,000 pivot level. It is close to the 61.8% Fib retracement level of the upward move from the $49,130 swing low to the $109,590 high. Any more losses might call for a move toward the $64,000 zone in the coming weeks.
Overall, Bitcoin is consolidating above the key support at $80,000. If the bulls remain in action, BTC could easily drift toward the $88,000 level or even $90,000. If not, the bears could aim for a test of the $75,000 support zone.
