Bitcoin ’s recent attempts to overcome a resistance level at $107,200 have faltered, leading to a downward correction. The cryptocurrency is currently trading below the $104,500 mark, as well as the 100-hourly Simple Moving Average, indicating a shift in momentum. A significant bearish trend line is taking shape, with resistance forming around the $103,650 level on the hourly chart.
Initially, Bitcoin exhibited positive momentum, breaking above the $103,500 level and even hitting levels above $106,000. However, selling pressure intensified near the $107,200 zone, triggering a reversal. Currently, the price has dipped below $105,000, crossing beneath the 50% Fibonacci retracement level that stems from a prior low of $100,114 to the recent high at $107,200.
In terms of resistance levels, immediate hurdles can be seen near $103,000, followed by a more critical threshold at $103,500. The formation of the bearish trend line at $103,650 further complicates the scenario. Should Bitcoin breach this resistance, it could signal potential for a price rally towards $104,500 and potentially test the resistance again at $107,200, which may also hint at new all-time highs. A decisive close above $104,500 could pave the way for further gains, possibly targeting $112,500.
Conversely, if Bitcoin fails to reclaim the $104,000 resistance, it might face additional downward pressure. Immediate support lies around $101,750, alongside the significant support level near $100,500, with the possibility of revisiting the crucial $100,000 zone. In more bearish scenarios, continued pressure could lead prices towards support near $88,500. Technical indicators currently reflect bearish trends; the MACD shows increasing bearish momentum, while the Relative Strength Index has dipped below 50.
