Bitcoin has entered a downward trend, currently trading below the $105,000 level and approaching the critical support level of $100,000. The price of Bitcoin has seen a significant decline of nearly 5%, raising concerns among investors as it attempts to hold above the support level.
After reaching a resistance area around $108,000, Bitcoin struggled to maintain its upward trajectory and began to lose ground. A noticeable drop below $102,500 led to further declines, culminating in a low near $98,728 as the cryptocurrency now works through this recent sell-off. A bearish trend line has formed, indicating potential resistance around $102,000 on the hourly chart.
Currently, Bitcoin is trading under $104,000 and is below the 100-hour simple moving average. If it continues to face obstacles, immediate resistance may be encountered near the $100,500 level, which is close to the 23.6% Fibonacci retracement of the drop from the recent high to the aforementioned low. The primary resistance to watch is at $101,000; a break above this level might trigger a reassessment of Bitcoin ’s potential price movements, with the next target being $102,250.
On the downside, if Bitcoin fails to surpass the $101,000 resistance zone, it could see further declines. The immediate support area is approximately $98,500, with the major support level lying at $98,000. Should prices fall further, the cryptocurrency may test the $96,200 region and potentially dip toward the $95,500 level in the near future.
Technical indicators reveal a bearish sentiment, as the hourly MACD continues to gain momentum in the negative territory and the RSI remains below the midpoint. The situation calls for careful monitoring of the critical support and resistance levels as Bitcoin navigates its current volatility.
