Can Bulls Defend Key Levels?
Bitcoin price struggled to break above the $107,200 resistance zone. BTC is correcting gains and may revisit the $100,000 support area.
- Bitcoin started a downward correction from the $107,200 area.
- The price is trading below $104,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $103,650 on the hourly chart of the BTC/USD pair (data feed via Kraken).
- If the pair holds above the $100,500 support area, another upward move could start.
Bitcoin price drops again
Bitcoin price starts decent A break above the $103,500 area. BTC was able to rise above $104,500 and $105,000.
The bulls even pushed the price above $106,000. However, bears are active near the $107,200 area. A high was formed at $107,200 and the price is now correcting gains. The price fell below the $105,000 level.
There was a break below the 50% Fib retracement level of the upward move from the $100,114 swing low to $107,200 high. Bitcoin price is currently below $104,500, 100 hour simple moving average.
On the upside, immediate resistance lies near $103,000. The first key resistance is near $103,500. There is also a key bearish trend line forming with resistance at $103,650 on the hourly chart of the BTC/USD pair. A clear break above the $103,650 resistance could push the price higher. The next key resistance level is likely to be $104,500.
A close above the $104,500 resistance could lead to further gains. In the above scenario, the price may rise and test the $107,200 resistance and new all-time highs. In case of further gains, the price may rise towards the $112,500 level.
More Bitcoin losses?
If Bitcoin fails to break above the $104,000 resistance zone, it may start a downside correction. Immediate support on the downside is located near the $101,750 level, which is the 76.4% Fib retracement level of the upward move from the $100,114 low to $107,200 high. The first major support is located near $100,500.
The next support is near the $100,000 area. Any further losses could push the price towards the $88,500 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 – $101,650, followed by $100,500.
Major resistance levels – $103,650 and $104,500.
