Bitcoin Price on the Brink: Could a Deeper Drop Be Ahead?

Bitcoin price failed to surpass $95,500 and declined again. BTC is back below $94,500 and might revisit the $91,200 support zone.

• Bitcoin started a fresh decline from the $96,500 zone.
• The price is trading below $95,500 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $94,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $92,500 support zone.

Bitcoin price started a decent upward move above the $93,500 resistance zone. BTC was able to climb above the $94,200 and $94,500 resistance levels.

The pair cleared the $95,000 resistance level but upsides were limited. The price started another decline and traded below the $93,500 level. A low was formed at $92,950 and the price is now consolidating losses. There is a connecting bearish trend line forming with resistance at $94,000 on the hourly chart of the BTC/USD pair.

The trend line is close to the 23.6% Fib retracement level of the recent decline from the $97,308 swing high to the $92,950 low. Bitcoin price is now trading below $95,000 and the 100 hourly Simple moving average.

On the upside, immediate resistance is near the $94,000 level. The first key resistance is near the $95,000 level or the 50% Fib retracement level of the recent decline from the $97,308 swing high to the $92,950 low. A clear move above the $95,000 resistance might send the price higher.

The next key resistance could be $95,500. A close above the $95,500 resistance might send the price further higher. In the stated case, the price could rise and test the $96,500 resistance level. Any more gains might send the price toward the $98,000 level.

If Bitcoin fails to rise above the $94,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $93,500 level.

The first major support is near the $92,800 level. The next support is now near the $92,500 zone. Any more losses might send the price toward the $91,200 support in the near term.

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 – $93,500, followed by $92,500.

Major Resistance Levels – $94,500 and $95,500.