Key Highlights
- Bitcoin price declined heavily and even traded below the $80,000 support.
- BTC is now well below a key bearish trend line with resistance at $86,650 on the 4-hour chart.
- Ethereum price also declined and traded below the $2,000 support.
- The US CPI could rise 2.9% in Feb 2025 (YoY).
Bitcoin Price Technical Analysis
Bitcoin price made a couple of attempts to settle above $90,000 against the US Dollar. However, BTC failed and started a fresh decline.
Looking at the 4-hour chart, the price gained bearish momentum after it broke the $85,000 support zone. There was a close below the $85,000 level, the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The bears even pushed the price below the $80,000 mark. A low was formed at $76,539 and the price is now consolidating losses. On the upside, the price could face resistance near the $84,700 level or the 50% Fib retracement level of the downward move from the $92,873 swing high to the $76,539 low.
The next key resistance is $86,500. There is also a key bearish trend line forming with resistance at $86,650 on the same chart. It is close to the 61.8% Fib retracement level of the downward move from the $92,873 swing high to the $76,539 low.
A successful close above $86,650 might start another steady increase. In the stated case, the price may perhaps rise toward the $90,000 level. Any more gains might call for a test of $92,000.
Immediate support is near the $78,500 level. The next key support sits at $76,650. A downside break below $76,650 might send Bitcoin toward the $75,000 support. Any more losses might send the price toward the $72,500 support zone.
Looking at Ethereum, there was a fresh bearish reaction and the bears pushed the price below the $2,000 support zone.
Today’s Economic Releases
- US Consumer Price Index for Feb 2025 (MoM) – Forecast +0.3%, versus +0.5% previous.
- US Consumer Price Index for Feb 2025 (YoY) – Forecast +2.9%, versus +3.0% previous.
- US Consumer Price Index Ex Food & Energy for Feb 2025 (YoY) – Forecast +3.2%, versus +3.3% previous.
