Bitcoin Price Recovery Looks Fragile, Another Drop May Follow Soon

TL;DR

Bitcoin price is experiencing a downside correction after failing to maintain levels above $77,500, currently trading below $77,000. A further drop may occur if it stays below critical support levels of $76,200 and $76,000.

Key points

Bitcoin price started a downside correction from $78,000
Trading below $77,000 and the 100 hourly simple moving average
Break below a contracting triangle with support at $76,750
Might extend losses if it stays below $76,200 and $76,000
Failed to clear the $78,000 resistance zone

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 Faces Resistance

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.

Source: BTCUSD on TradingView.com

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.

Downside Extension In BTC?

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.

Q&A

What is the current Bitcoin price trend?

Bitcoin is currently in a downside correction, trading below $77,000 after failing to hold above $77,500.

What support levels should Bitcoin holders watch?

Key support levels for Bitcoin are at $76,200 and $76,000; a drop below these levels may indicate further losses.

What resistance level did Bitcoin fail to clear recently?

Bitcoin failed to clear the resistance zone at $78,000, which has contributed to its recent price decline.