Bitcoin Price Crashes Hard—Is The Selloff Just Getting Started?

Bitcoin price started a fresh decline below the $83,500 zone. BTC is consolidating losses and might start another decline below the $80,000 level.

• Bitcoin started a fresh decline below the $82,000 zone.
• The price is trading below $81,200 and the 100 hourly Simple moving average.
• There was a break below a connecting bullish trend line with support at $83,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it clears the $80,500 zone.

Bitcoin price failed to settle above the $83,500 level and started a fresh decline. BTC traded below the $83,000 ad $82,000 levels to enter a bearish zone.

There was a break below a connecting bullish trend line with support at $83,000 on the hourly chart of the BTC/USD pair. The pair even dived below the $80,000 support zone. A low was formed at $77,057 and the price started a recovery wave.

There was a move above the $78,800 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $83,680 swing high to the $77,057 low. However, the price is struggling to continue higher.

Bitcoin price is now trading below $81,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $80,000 level. The first key resistance is near the $80,500 level or the 50% Fib retracement level of the recent decline from the $83,680 swing high to the $77,057 low.

The next key resistance could be $81,500. A close above the $81,500 resistance might send the price further higher. In the stated case, the price could rise and test the $82,500 resistance level. Any more gains might send the price toward the $83,500 level.

If Bitcoin fails to rise above the $80,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $77,500 level. The first major support is near the $77,000 level.

The next support is now near the $76,500 zone. Any more losses might send the price toward the $75,000 support in the near term. The main support sits at $74,200.

Technical indicators:

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

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

Major Support Levels – $77,500, followed by $77,000.

Major Resistance Levels – $80,000 and $80,500.