Bitcoin is currently experiencing a period of consolidation, maintaining its position above the $95,000 support level. However, the cryptocurrency faces challenges, as it has struggled to sustain momentum and could potentially decline further unless it manages to close above the $98,800 level.
Recent trading action indicates that Bitcoin has declined below the $98,000 level. At present, the price hovers below both this critical level and the 100-hour Simple Moving Average. A bearish trend line has formed, presenting resistance around the $98,200 level. For a potential recovery, Bitcoin ’s price must reclaim the $98,000 zone.
In terms of recent performance, Bitcoin was unable to maintain upward movement past the $100,500 level, leading to a decline that saw it slip beneath $98,500. The asset gained bearish momentum, falling through both the $98,000 and $96,000 points. Furthermore, it dipped below the 50% Fibonacci retracement level concerning the upward swing from a low of $91,000 to a high of $102,500. The latest price action showed Bitcoin testing the 61.8% Fibonacci retracement level and subsequently settling under the 100-hour Simple Moving Average.
Looking ahead, immediate resistance appears at around $96,750, while the next key resistance lies at $98,000. Should Bitcoin overcome the $100,000 resistance, it could continue to rise, potentially reaching the $101,200 resistance level, and even approaching $102,500.
Conversely, if Bitcoin fails to break through the $98,000 resistance, it risks initiating another downtrend. Immediate support is found near the $96,000 level, with stronger support at $95,500. Additional declines could see Bitcoin reach the $93,700 zone, with a crucial support level existing at $91,000. Current technical indicators suggest a bearish outlook, with the MACD indicating increased bearish momentum and the RSI positioned below the neutral level.
