Bitcoin ’s price is currently facing challenges around the $107,000 level, showing signs of a downward correction. After reaching a peak of $107,080, the cryptocurrency has been retracing and is now hovering around the $100,000 support level, which it may rely on in the coming days.
Starting from a position above $105,500, Bitcoin initially made solid gains, breaking through the $106,000 and $106,500 levels before hitting the psychological barrier at $107,000. However, selling interest emerged as Bitcoin reached this peak, leading to a drop below $105,000. A significant shift occurred as the price fell beneath a key bullish trend line that had established support at $104,800. The latest trading activity has seen Bitcoin testing the $100,700 level, where it established a low and is currently consolidating its position.
At present, Bitcoin is trading below both the $103,500 level and the 100-hourly Simple Moving Average. The immediate resistance level to watch is approximately $102,200, coinciding with the 23.6% Fibonacci retracement level from the previous high to the current low. The next significant resistance resides near $104,000, near the 50% Fibonacci retracement level. A decisive breach above this resistance could propel Bitcoin towards testing the $105,000 level, and potentially higher toward $106,200 and $107,000.
On the contrary, if Bitcoin ’s price continues to struggle at or below the $102,200 resistance, it risks initiating further declines. Immediate downside support is positioned around $100,500, with the major support level situated at $100,000. In the event of additional bearish momentum, the next support zone to monitor could be around $88,500, followed by $86,500.
Observing technical indicators, the MACD is showing increasing bearish momentum, while the Relative Strength Index (RSI) remains below the neutral 50 level, signaling continued downward pressure on Bitcoin ’s price action.
