Bitcoin's Price Volatility: Drops 4.5% After Surpassing $80,000

Bitcoin's price has recently shown signs of volatility, with a fresh increase above the $80,000 zone followed by a correction. The cryptocurrency is currently trading above $79,500 and the 100 hourly Simple moving average, indicating a potential struggle to maintain its position above this support level.

Bitcoin's price initially surged above the $77,500 zone, forming a base and gaining momentum to move above the $79,500 and $80,000 resistance levels. The bulls pushed the price above the $82,500 resistance, reaching a high of $83,548. However, the price has since started a downside correction, dipping below the $81,500 support and the 23.6% Fib retracement level of the upward move from the $74,572 swing low to the $83,548 high.

Currently, Bitcoin is trading above $79,200, with immediate resistance near the $80,500 level. A new connecting bearish trend line is forming with resistance at $80,500 on the hourly chart of the BTC/USD pair. If Bitcoin can clear the $80,500 zone, it could start another increase, with the first key resistance near the $81,500 level and the next key resistance at $82,500. A close above the $82,500 resistance might send the price further higher, potentially testing the $83,500 resistance level and even reaching the $85,000 level.

However, if Bitcoin fails to rise above the $80,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $79,500 level, with the first major support near the $79,000 level and the 50% Fib retracement level of the upward move from the $74,572 swing low to the $83,548 high. The next support is now near the $78,000 zone, with any more losses potentially sending the price toward the $76,500 support in the near term. The main support sits at $75,000.

Technical indicators suggest that the MACD is now losing pace in the bullish zone, while the RSI for BTC/USD is now above the 50 level. Major support levels are at $79,500 and $79,000, while major resistance levels are at $80,500 and $81,500. The current price action indicates that Bitcoin is holding the line, but its ability to bounce back or break lower remains uncertain.