Consolidation or Calm Before the Next Move?
Bitcoin price is holding steady above the $100,500 resistance zone. BTC is consolidating gains and could be targeting another break above the $105,000 area.
- Bitcoin started a downward correction from the $106,800 area.
- The price is trading below $104,000 and the 100 hourly simple moving average.
- There is a bullish trend line forming with support at $102,000 on the hourly chart of the BTC/USD pair (data via Kraken).
- If the pair holds above the $102,000 support area, it may start rising again.
Bitcoin prices usher in a new round of rise
Bitcoin price starts Decent move up Above the $104,500 area. BTC was able to rise above $105,500 and $106,000.
The bulls even pushed the price above $106,500. However, bears are active near the $106,800 area. A high was formed at $106,833 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 $101,281 swing low to $106,833 high. Bitcoin price currently below $104,000 100 hour simple moving average. There is also a connecting bullish trend line forming with support at $102,000 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance lies near $104,000. The first key resistance is near $105,500. A clear break above the $105,500 resistance could lead to a move higher. The next key resistance level is likely to be $106,800.
A close above the $106,800 resistance may push the price higher further. In the above scenario, the price may rise and test the $108,200 resistance and new all-time highs. In case of further gains, the price may rise towards the $110,000 level.
More Bitcoin losses?
If Bitcoin fails to break above the $104,500 resistance zone, it may start a downside correction. Immediate support on the downside lies near the $102,500 level, which is the 76.4% Fib retracement level of the upward move from the $101,281 swing low to $106,833 high. The first major support is located near $101,250.
The next support level is currently located near the $100,500 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 – $102,500, followed by $101,250.
Major resistance levels – $104,500 and $105,500.
