Bitcoin Price Approaches Key Support
Bitcoin is moving lower below the $80,000 support zone. BTC is approaching crucial support at $74,500, below which the price could tumble.
In the past few days, Bitcoin price saw a fresh decline below the $88,000 support zone. BTC bears remained in action amid the trade war by Trump. There was a steady decline below the $85,000 support zone and the price entered a bearish zone.
There was a move below the 50% Fib retracement level of the upward move from the $52,576 swing low to the $109,590 high. The price is now trading near the 50-week simple moving average (blue) with a bearish angle.
The weekly chart of BTC suggests the price is now approaching a crucial support zone at $74,500. It coincides with the 61.8% Fib retracement level of the upward move from the $52,576 swing low to the $109,590 high.
If the bulls manage to protect the $74,500 support zone, there could be a recovery wave. Immediate resistance is visible near the $80,000 level. The first major resistance is near the $82,000 level. There is also a key bearish trend line with resistance near the $82,000 level on the weekly chart.
A clear move above the $82,000 level could set the pace for a steady increase. In the stated case, the price could rise and test of the $88,800 resistance level. If the bulls succeed in clearing the $88,800 resistance, it could be a strong bullish signal. The next key resistance could be near the $92,400 level. Any more gains might send Bitcoin toward the $100,000 level.
More Losses In BTC?
If Bitcoin fails to stay above the $74,500 support, it might continue to move down. Immediate support is near the $72,000 level. The first major support is near the $70,000. The next major support sits near the $66,200 level.
A weekly close below the $66,200 level could start a larger decline. In the stated case, BTC could drop toward the $60,000 pivot level. Any more losses might call for a move toward the $52,000 zone in the coming weeks or even the 1.236 Fib extension level of the upward move from the $52,576 swing low to the $109,590 high at $39,350.
Overall, Bitcoin is approaching a key support at $74,500. If the bulls remain in action, BTC could start a recovery wave above the $80,000 level. If not, the bears could aim for a test of the $70,000 support zone.