Sell-off Dominates as $80,000 Collapses... Will Bitcoin Fall to $78,800 Support Level?

▲ Bitcoin (BTC) Crash/Gemini Generated Image

An analysis has emerged suggesting that short-term bearish pressure on Bitcoin (BTC) has increased again as it failed to maintain the $80,500 support level and fell below $80,000.

NewsBTC reported on May 14 (local time) that Bitcoin started a new downward trend below the $80,500 range and may struggle to hold the $78,800 support level. According to the article, Bitcoin extended its losses after failing to recover $80,500 and is currently moving below $80,000 and the 100-hour simple moving average.

Bitcoin dropped below $79,500 and then fell further below $79,000, with a low formed at $78,720. Subsequently, the price retraced some of its losses, surpassing the 23.6% Fibonacci retracement level of the downtrend from the $81,250 high to the $78,720 low.

However, the immediate resistance level is around $80,000, and the 50% Fibonacci retracement level of the same downtrend is also in this range.

The first key resistance level is $80,500. A bearish trend line forming resistance around $80,700 also appeared on the BTC/USD hourly chart based on Kraken data. If Bitcoin breaks through the $80,700 resistance level on a closing basis, it could test the $81,200 resistance level, and if it rises further, $82,000 and $82,500 are presented as the next barriers.

Conversely, if Bitcoin fails to overcome the $80,500 resistance level, further declines may follow. The immediate support level is $79,200, and the first major support level is presented as $78,800. The next support level is the $78,000 range, and if further losses occur, it could fall to the $76,200 support level in the short term.

Technical indicators also pointed to a bearish dominance. The hourly Moving Average Convergence Divergence (MACD) is losing momentum in the bearish zone, and the BTC/USD hourly Relative Strength Index (RSI) remains below 50. According to the article, the key support levels are summarized as $79,200 and $78,800, and the key resistance levels are $80,000 and $80,700.

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