Bitcoin’s price continued to decline, falling below $88,500. It is now consolidating and could attempt a recovery if it manages to break back above $88,500. After dipping to around $86,000, the price saw a minor bounce but remains below $88,200 and the 100-hour Simple Moving Average. A new bearish trend line is forming with resistance near $88,000 on the hourly chart.
If Bitcoin stabilizes above $86,200 and $86,000, it may try to move higher. Immediate resistance sits near $88,000, followed by the key level at $88,500—which aligns with the 50% Fibonacci retracement of the recent drop from $91,099 to $86,007. A sustained move above $88,500 could open the door for a test of $89,200, with further hurdles at $90,000, $91,000, and $91,500.
On the downside, failure to clear $88,500 could lead to another drop. Initial support is near $86,700, with more significant levels at $86,200 and $85,500. A deeper decline might target $83,500, while the main support sits at $82,500.
Technical indicators show the hourly MACD is slowing its bearish momentum, and the RSI remains below 50.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Bitcoin Faces Growing Risk of a Price Drop as Bears Target 85000 designed to be helpful for both beginners and more experienced observers
Beginner General Questions
1 What does this headline even mean
It means that analysts and market data are suggesting Bitcoins price is under pressure and is more likely to fall than rise in the near term The key level to watch for a potential bigger drop is around 85000
2 Who or what are the Bears
Bears are traders or investors who believe the price of an asset will go down A bearish market sentiment is one of pessimism and expectation of declining prices
3 Why is 85000 such an important number here
In trading certain price levels act as major support or resistance 85000 is identified as a critical support level If Bitcoins price falls and stays below that level it could signal to many traders that the downward trend is strong potentially triggering more selling and a steeper drop
4 What causes Bitcoins price to be at risk of dropping
Many factors can contribute including large investors selling negative news a slowdown in new investment from ETFs broader economic uncertainty or simply traders taking profits after a big rally
5 Should I panic and sell my Bitcoin if I see this
Panic selling is rarely a good strategy Headlines reflect shortterm sentiment You should make decisions based on your own investment goals risk tolerance and longterm outlook not just one piece of news
Intermediate Market Analysis Questions
6 What are the signs that bears are targeting a price
Traders look at charts for patterns Signs include the price struggling to break above a certain point increasing selling volume and the price approaching and testing a known support level multiple times
7 What happens if Bitcoin breaks below 85000
Technically it could trigger automatic sell orders and lead to a wave of selling as traders exit positions to avoid further losses The next major support level would then become the focus