Bitcoin Price Bounce Weakens, Downside Risks Begin Rising Again

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Bitcoin price started a recovery wave above the $76,800 zone. BTC is consolidating and might aim for more gains if it clears the $78,300 resistance zone.

• Bitcoin managed to form a base above $76,000 and started a recovery wave.
• The price is trading above $77,200 and the 100 hourly simple moving average.
• There was a break above a bearish trend line with resistance at $77,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might gain bullish momentum if it settles above the $79,000 zone.

Bitcoin Price Eyes Fresh Upside Break

Bitcoin price remained supported above the $76,000 zone. BTC formed a base and settled above $76,500 to start a recovery wave. There was a move above the $76,650 and $77,000 levels.

The bulls were able to push the price above the 23.6% Fib retracement level of the downward move from the $82,017 swing high to the $76,020 low. Besides, there was a break above a bearish trend line with resistance at $77,200 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $77,500 and the 100 hourly simple moving average. If the price remains stable above $77,500, it could attempt a fresh increase. Immediate resistance is near the $78,300 level.

The first key resistance is near the $79,000 level or the 50% Fib retracement level of the downward move from the $82,017 swing high to the $76,020 low. A close above the $79,000 resistance might send the price further higher. In the stated case, the price could rise and test the $80,500 resistance. Any more gains might send the price toward the $81,500 level. The next barrier for the bulls could be $82,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $79,000 resistance zone, it could start another decline. Immediate support is near the $77,200 level.

The first major support is near the $76,500 level. The next support is now near the $76,000 zone. Any more losses might send the price toward the $75,000 support in the near term. The main support now sits at $73,500, below which BTC might struggle to recover in the near term.

Technical indicators:

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

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

Major Support Levels – $76,500, followed by $76,000.

Major Resistance Levels – $78,300 and $79,000.