The price of Bitcoin has taken a downward turn, falling below the $85,500 mark, and is currently in a phase of consolidation. Observers are speculating on the possibility of the leading cryptocurrency breaking through the $85,200 resistance zone.
Bitcoin’s price has dipped under $85,000, and it is also trading below the 100 hourly Simple Moving Average (SMA). A bearish trend line with resistance at $84,800 is emerging on the hourly chart of the BTC/USD pair, based on data sourced from Kraken.
Despite the current trend, the BTC/USD pair could witness a surge if it manages to breach the $85,000 resistance level. After struggling near the $86,500 mark, Bitcoin’s price began to plummet, falling below the $85,500 and $85,000 thresholds, entering a bearish zone in the short term.
The price dipped as low as $83,171 before making some recovery. There was a rise above the $83,800 level and the price surpassed the 50% Fibonacci retracement level of the downward move from the $86,401 high to the $83,171 low.
Immediate resistance on the upside is around the $84,750 mark, with a bearish trend line forming with resistance at $84,800. The first significant resistance is around the $85,150 mark or the 61.8% Fibonacci retracement level of the drop from the $86,401 high to the $83,171 low, with the next significant resistance potentially at $85,500.
If Bitcoin manages to close above the $85,500 resistance, it could trigger a further rise in price. In such a scenario, the price could reach the $85,800 resistance level, and further gains could push the price towards the $86,400 mark.
However, if Bitcoin fails to break the $85,000 resistance zone, it could trigger another round of decline. Immediate support on the downside lies near the $83,900 mark, with major support near the $83,200 mark. Further losses could push the price towards the $81,500 support level in the near term, with the primary support resting at $80,800.
