Chart Analysis Suggests Bitcoin May Drop to $75K if $83K Support is Breached

Bitcoin Faces Bearish Pressure as Bulls Struggle to Maintain Momentum Above $86K

Bitcoin’s (BTC) recent recovery rally has encountered significant resistance, and the failure to break above the $86,000 level is increasing the risk of a bearish shift in key technical indicators.

Since Sunday, the $86K mark has proven difficult for bulls to surpass, resulting in a stalling rally. This lack of a breakout is starting to trigger bearish signals in important momentum indicators, particularly the 50-, 100-, and 200-hour simple moving averages (SMAs). When the shorter-term SMAs are stacked below the 200-hour SMA and trend downward, it typically signals a bearish market environment.

The 50- and 100-hour SMAs have reached their peak and are now poised to cross bearishly, with the 50-hour moving average expected to drop below the 100-hour average. While Bitcoin’s price is still above the 200-hour SMA, the weakening shorter-term averages suggest that sellers are beginning to assert more control.

Further indicating a loss of bullish momentum, the daily MACD histogram has stopped printing higher bars above the zero line, showing that upward momentum is faltering and reinforcing the possibility of a bearish turn.

In light of the downward-sloping 50- and 100-day SMAs, bulls must tread carefully. A move below the $83,000 support level on the hourly chart would confirm the bearish trend, with the potential for Bitcoin to retest recent lows around $75,000.

However, for the bullish case to remain intact, Bitcoin would need to close above $86,000 in UTC to signal that the recovery rally is still on track.