Bitcoin's Price Volatility Continues, Drops 7% From Recent High

Bitcoin's price has been experiencing significant volatility, with a recent recovery wave above the $85,500 zone. However, the cryptocurrency has since trimmed all gains and is at risk of declining again toward the $80,000 zone. The price is currently trading near $83,500 and the 100 hourly Simple moving average, indicating a potential for further decline.

Bitcoin managed to stay above the $82,500 support zone and formed a base, initiating a recovery wave above the $83,500 resistance zone. The bulls pushed the price above the $84,500 and $85,500 resistance levels, with a high formed at $89,042. However, the price started a sharp decline, dropping below the $86,000 and $85,000 levels. There was a break below a connecting bullish trend line with support at $85,000 on the hourly chart of the BTC/USD pair, with a low formed at $82,141. The price is now consolidating near the 23.6% Fib retracement level of the recent decline from the $89,042 swing high to the $82,141 low.

On the upside, immediate resistance is near the $84,000 level, with the first key resistance near the $85,000 level. The next key resistance could be $85,550 and the 50% Fib retracement level of the recent decline from the $89,042 swing high to the $82,141 low. A close above the $85,550 resistance might send the price further higher, potentially testing the $86,800 resistance level. Any more gains might send the price toward the $88,000 level or even $88,500.

If Bitcoin fails to rise above the $85,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $82,800 level, with the first major support near the $82,200 level. The next support is now near the $81,350 zone, with any more losses potentially sending the price toward the $80,500 support in the near term. The main support sits at $80,000.

Technical indicators suggest that the MACD is now losing pace in the bearish zone, while the RSI for BTC/USD is now below the 50 level. Major support levels are at $82,800 and $82,200, while major resistance levels are at $84,200 and $85,500. Despite the recent volatility, bears appear to maintain the upper hand, with the potential for further declines if key resistance levels are not breached.