Bitcoin Reversal Risk Grows After Rejection Above $80K

Key Highlights

• Bitcoin failed to stay above $80,000 and started another pullback.
• A few key hurdles seem to be forming near $81,400 and $82,250 on the 4-hour chart of BTC/USD.
• Ethereum also failed on multiple occasions near $2,550.
• Gold could face heavy resistance near $4,480 and $4,500.

Bitcoin Price Technical Analysis

Bitcoin price made another attempt to settle above $80,000 against the US Dollar but failed. BTC traded to a new multi-week high at $82,266 before it faced rejection.

Looking at the 4-hour chart, the price started another pullback below $81,400 and $81,000. The price dipped below a bullish trend line with support at $79,250. The bears were able to push BTC below the 50% Fib retracement level of the upward move from the $76,139 swing low to the $82,266 high, and the 100 simple moving average (red, 4-hour).

If there are more losses, the price could revisit $76,200. The first major support might be $72,500, the 200 simple moving average (green, 4-hour), and the 1.618 Fib extension level of the upward move from the $76,139 swing low to the $82,266 high.

A downside break and close below $72,500 could trigger a sharp decline. In the stated scenario, the price could test $70,000. On the upside, an immediate resistance could be $79,950. The first major resistance might be $80,000. The main resistance might be $81,400. A close above $81,400 could send the price toward $82,250. Any further gain might call for a test of $85,000.

Looking at Ethereum, the price is also struggling to settle above $2,550 and might see a downside correction in the near term.

Today’s Key Economic Releases

• ECB President Lagarde’s speech.