Bitcoin Price Roars Back: Recovery After Sharp Correction
Bitcoin price fell sharply from a high of $104,015, falling below $95,000. BTC is currently recovering losses and faces a hurdle near $99,000.
- Bitcoin began a sharp decline after hitting a new all-time high of $104,015.
- The price is trading above $97,500 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support at $96,000 on the hourly chart of the BTC/USD pair (data feed via Kraken).
- The pair could regain momentum if the price closes above the key milestone level of $100,000.
Bitcoin price regains lost ground
Bitcoin price starts another increase The upper resistance area is $98,500. BTC broke above the $99,500 and $100,000 resistance levels. The bulls even pushed it to new all-time highs.
A high was formed at $104,015 and the price witnessed a sharp downward correction. There was a break below the $100,000 and $95,000 levels. Price tested the $92,000 area. A low was formed at $91,800 and the price is now recovering losses.
The price has broken above the 50% Fibonacci retracement level of the move from a swing high of $104,015 to a low of $91,800. Bitcoin price is currently trading above $97,500 100 hour simple moving average. There is also a key bullish trend line forming with support at $96,000 on the hourly chart of the BTC/USD pair.
On the upside, the price may face resistance near the $99,360 level or the 61.8% Fibonacci retracement level of the swing high from $104,015 to $91,800 low. The first key resistance level is near $100,000. A clear break above the $100,000 resistance could lead to a move higher.
The next key resistance level is likely to be $102,000. A close above the $102,000 resistance could lead to further gains. In the above scenario, the price may rise and test the $104,000 resistance. In case of further gains, the price may rise towards the $108,000 level.
Bitcoin falling again?
If Bitcoin fails to break above the $100,000 resistance, it may start another downward correction. Immediate support on the downside is near $97,000.
The first major support level is located near $96,000. The next support is near the $95,000 area. Any further losses could push the price towards the $92,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is currently accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
The main support level – $97,000, followed by $96,000.
Major resistance levels – $100,000 and $102,000.
