Bitcoin Drops 5% Below $78,000, Faces Bearish Trend

Bitcoin's price has recently experienced a significant decline, falling below the $78,000 mark. This drop has led to a consolidation of losses, with the cryptocurrency facing resistance near the $77,800 zone. The price is currently trading below $78,500 and the 100 hourly Simple Moving Average, indicating a bearish trend. A connecting bearish trend line is forming with resistance at $79,500 on the hourly chart of the BTC/USD pair, suggesting that any upward movement may face significant obstacles.

Bitcoin's price has dipped below key support levels, including $80,000 and $79,500, entering a bearish zone. The price even fell below the $75,000 support zone, reaching a low of $74,475 before starting a recovery wave. This recovery saw the price climb above the $75,500 level and the 23.6% Fib retracement level of the recent decline from the $80,800 swing high to the $74,475 low. However, the price is still trading below $78,200 and the 100 hourly Simple Moving Average, with immediate resistance near the $77,800 level or the 50% Fib retracement level of the recent decline.

The first key resistance is near the $78,500 level, with the next key resistance at $79,500. A close above the $79,500 resistance could potentially send the price further higher, testing the $81,500 resistance level and possibly rising toward the $82,000 level. However, if Bitcoin fails to rise above the $78,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $75,750 level, with the first major support near the $74,750 level. The next support is now near the $73,500 zone, with any more losses potentially sending the price toward the $72,000 support in the near term. The main support sits at $70,000.

Technical indicators suggest a bearish trend, with the MACD gaining pace in the bearish zone and the RSI for BTC/USD now below the 50 level. Major support levels are at $75,750 and $74,750, while major resistance levels are at $78,500 and $79,500. The current market conditions suggest that Bitcoin's price may continue to face challenges in the near term, with potential for further declines if key resistance levels are not breached.