Bitcoin Price Pulls Back to Support—Breakdown or Bounce Ahead?

Bitcoin price started another decline below the $96,800 zone. BTC is retesting the $95,500 support zone and might struggle to recover losses.

• Bitcoin started a fresh decline from the $98,000 zone.
• The price is trading below $96,500 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance at $96,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $95,000 zone.

Bitcoin price failed to clear the $99,000 and $100,000 resistance levels. BTC formed a top and started a fresh decline below the $97,000 level. There was a clear move below the $96,500 support level.

The price even dipped below the $95,000 level. However, the bulls appeared near $95,200. A low was formed at $95,224 and the price is now attempting to recover. There was a move above the $96,000 level. The price cleared the 23.6% Fib retracement level of the downward move from the $98,826 swing high to the $95,224 low.

Bitcoin price is now trading below $96,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $96,400 level. There is also a key bearish trend line forming with resistance at $96,400 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $97,000 level or the 50% Fib retracement level of the downward move from the $98,826 swing high to the $95,224 low. The next key resistance could be $98,000.

A close above the $98,000 resistance might send the price further higher. In the stated case, the price could rise and test the $98,800 resistance level. Any more gains might send the price toward the $100,000 level or even $100,500.

If Bitcoin fails to rise above the $97,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $95,500 level. The first major support is near the $95,200 level.

The next support is now near the $95,000 zone. Any more losses might send the price toward the $93,500 support in the near term. The main support sits at $92,200.

Technical indicators:

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

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

Major Support Levels – $95,500, followed by $95,000.

Major Resistance Levels – $97,000 and $98,000.