Bitcoin Price Corrects, Yet Support Zones Keep Bulls in Play
Bitcoin price started rising again, breaking above the $106,000 resistance zone. BTC traded to an all-time high above $108,000 and is currently correcting gains.
- Bitcoin started a fresh surge above the $106,000 area.
- The price is trading above $105,000 and the 100 hourly simple moving average.
- There is a break above a key bullish trend line with support at $106,000 on the hourly chart of the BTC/USD pair (data feed via Kraken).
- If the pair holds above the $103,750 support area, a fresh increase may begin.
Bitcoin price maintains upward trend
Bitcoin Price Forms Base and Starts fresh addition Above the $103,500 area. The price broke above the $104,000 and $105,000 levels.
The price even broke above the $106,000 level. The new all-time high is $108,297, and the price is currently correcting the gains. The 23.6% Fib retracement level of the recent swing from the $99,250 swing low to $108,297 high was marginally lower.
There is a broken wire under the key bullish trend line Support is located at $106,000 on the hourly chart of the BTC/USD pair. Bitcoin price is currently trading above $105,000 and the 100 hourly simple moving average.
On the upside, the price may face resistance near $106,200. The first key resistance is near $107,750. A clear break above the $107,750 resistance could lead to a move higher. The next key resistance level is likely to be $108,250. A close above the $108,250 resistance is likely to push the price higher.
In the above scenario, the price may rise and test the $112,000 resistance. In case of further gains, the price may rise towards the $115,000 level.
Does Bitcoin Have More Downside?
If Bitcoin fails to break above the $106,200 resistance zone, it may continue to fall. Immediate support on the downside lies near the $105,000 level.
First major support is seen near $103,750, which is the 50% Fibonacci retracement level of the recent swing from the $99,250 low to $108,297 high. The next support is near the $102,200 area. Any further losses could push the price towards the $100,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
The main support level – $105,000, followed by $103,750.
Major resistance levels – $106,200 and $108,250.
