Bitcoin bears hold firm above the $80K support zone following last week’s sharp decline

Bitcoin edged higher in early Monday trading as traders took profits following last week’s steep 13% decline. The losses accelerated on Sunday, with a sharp 5% drop adding to the broader downturn.

Over the weekend, former President Trump hosted a crypto summit with industry leaders to promote his plan for a strategic reserve of Bitcoin and other digital assets. However, the market reacted negatively to the proposal, which suggested funding the reserve with Bitcoin seized from criminal activities—signaling no immediate need for additional cryptocurrency purchases, thereby weighing on Bitcoin’s price.

Bears established a foothold at the key psychological support level of $80K, though recovery attempts faced strong resistance at the 200-day moving average (DMA) at $82,998. This level remains a significant obstacle for further upside.

Technical indicators on the daily chart continue to signal strong bearish momentum, keeping pressure on the pivotal $80K and $79,160 support levels (50% Fibonacci retracement of the $48,738–$109,582 rally). A clear break below these levels would reinforce bearish sentiment and expose downside targets at $74,825 (55-week moving average), $71,980 (61.8% Fibonacci retracement), and the psychological $70K mark.

A sustained close below the 200DMA would confirm the bearish outlook and keep near-term risks skewed to the downside. Conversely, a breakout above this level could ease selling pressure and open the door for a stronger rebound.

On the upside, the broken 38.2% Fibonacci retracement level at $86,339 and the 10DMA at $86,994 serve as initial resistance, while key upper pivots lie at $89,380 (20DMA) and the psychological $90K barrier.

Res: 82998; 84032; 86339; 86994

Sup: 80000; 79160; 78115; 74825