Bitcoin is currently facing challenges in surpassing the $102,000 resistance level, which has prompted a downward correction. Following a peak price of $102,500, Bitcoin has dipped and now tests the support level of $97,500. Currently, Bitcoin is trading above $98,000, aided by the 100-hour Simple Moving Average.
Initially, the cryptocurrency showed signs of recovery after establishing a base above $98,800, climbing through the $99,200 and $99,500 levels. However, upon hitting the $100,000 milestone, selling pressure emerged near the $102,000 area. The recent price action indicates that Bitcoin is retracing below the 23.6% Fibonacci retracement of the swing from $94,315 to $102,500, which may signal further consolidation.
A critical observation on the hourly chart is the breach of a connecting bullish trend line, originally offering support around $101,000. As Bitcoin trades above the $98,000 level, it faces immediate resistance at roughly $100,500, with stronger resistance visible at the $101,500 level. A decisive breakthrough at this level could set the stage for a subsequent rally, potentially testing $102,000 once again, and if successful, could push the price toward the $104,000 and $105,000 targets.
Conversely, if Bitcoin fails to maintain momentum above $102,000, it could see further declines. Immediate support appears at the $98,400 level, accompanied by the 50% Fibonacci level relative to the aforementioned swing. The primary support zones to watch are at $97,500 and just below that at $96,250. Persistent losses could lead Bitcoin down to the crucial psychological level of $95,000.
Technical indicators currently suggest a bearish sentiment, with the MACD gaining traction in negative territory while the Relative Strength Index indicates weakness below the neutral 50 level.
