Bitcoin Price Recovery Looks Fragile, Another Drop May Follow Soon

Bitcoin price started a downside correction from the $78,000 zone. BTC is consolidating and might aim for a fresh increase if it clears $78,000.

• Bitcoin failed to stay above $77,500 and extended losses.
• The price is trading below $77,000 and the 100 hourly simple moving average.
• There was a break below a contracting triangle with support at $76,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might extend losses if it stays below the $76,200 and $76,000 levels.

Bitcoin price failed to clear the $78,000 resistance zone. BTC started a downside correction from the $77,809 swing high and traded below $77,500.

There was a move below the 23.6% Fib retracement level of the upward move from the $74,209 swing low to the $77,809 high. Besides, there was a break below a contracting triangle with support at $76,750 on the hourly chart of the BTC/USD pair.

However, the bulls are active above $76,000. Bitcoin is now trading below $77,000 and the 100 hourly simple moving average. If the price remains stable above $76,000, it could attempt a fresh increase. Immediate resistance is near the $76,750 level.

The first key resistance is near the $77,200 level. A close above the $77,200 resistance might send the price further higher. In the stated case, the price could rise and test the $77,800 resistance. Any more gains might send the price toward the $78,000 level. The next barrier for the bulls could be $79,500.

If Bitcoin fails to rise above the $77,200 resistance zone, it could start another decline. Immediate support is near the $76,000 level or the 50% Fib retracement level of the upward move from the $74,209 swing low to the $77,809 high.

The first major support is near the $75,500 level. The next support is now near the $75,000 zone. Any more losses might send the price toward the $74,000 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 bearish zone.

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

Major Support Levels – $76,000, followed by $75,000.

Major Resistance Levels – $77,200 and $78,000.