Bitcoin Price Takes a Breather: Gains Reduced Amid Volatility
Bitcoin price failed to stay above the $100,000 area. BTC is correcting gains and may struggle to stay above the $96,000 support area.
- Bitcoin started a fresh decline from the $102,500 resistance zone.
- The price is trading below $100,000 and the 100 hourly simple moving average.
- There was a bullish trend line breaking support at $98,500 on the hourly chart of the BTC/USD pair (data feed via Kraken).
- If the pair holds above the $95,500 support area, another upward move could start.
Bitcoin price drops below $100,000
Bitcoin price started a sharp rise above the $98,500 resistance zone. BTC was able to break above the $99,200 and $100,000 resistance levels. However, it could not be cleared $102,500 Resistance Zone.
The price formed a high at $102,759 before starting a fresh decline. There was a clear break below the $100,000 support area. Additionally, there was a break above the connecting bullish trend line with support at $98,500 on the hourly chart of the BTC/USD pair.
The pair even fell below $96,500. A low was formed at $96,100, and the price is now consolidating losses below the 23.6% Fibonacci retracement level of the recent swing high from $102,759 to $96,100 low.
Bitcoin price is currently below $98,500, 100 hour simple moving average. On the upside, immediate resistance lies near $97,500. The first key resistance is near $98,500. A clear break above the $98,500 resistance could lead to a move higher.
The next key resistance level is likely to be $99,500, or the 50% Fib retracement level of the recent swing high from $102,759 to $96,100 low. A close above the $99,500 resistance could lead to further gains. In the above scenario, the price may rise and test the $102,500 resistance. In case of further gains, the price may rise towards the $104,000 level.
Bitcoin falling again?
If Bitcoin fails to break above the $97,500 resistance, it may start a fresh decline. Immediate support on the downside lies near the $96,500 level.
The first major support is located near $96,100. The next support is near the $95,550 area. Any further losses could push the price towards the $93,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is currently accelerating in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
The main support level – $96,500, followed by $95,500.
Major resistance levels – $97,500 and $98,500.
