Bitcoin has seen a significant increase, breaking through the $106,000 resistance level and reaching a historic peak above $108,000. Currently, however, the cryptocurrency is experiencing a correction after this upward movement.
Following a strong foundation, Bitcoin managed to surge past the critical levels of $103,500, $104,000, and $105,000. The price not only exceeded the $106,000 level but also established a new record at $108,297. Despite this increase, a slight decline was noted as the price dipped below the 23.6% Fibonacci retracement level of the recent surge from a low of $99,250 to the peak at $108,297. A significant break occurred beneath an essential bullish trend line with support once situated at $106,000.
Currently, Bitcoin is trading above $105,000 and remains above its 100-hourly simple moving average. There appears to be potential resistance around the $106,200 level, while the initial substantial resistance level can be observed near $107,750. If Bitcoin prices surpass this level, a further increase could be anticipated, potentially targeting $108,250. A successful close above this level could lead to a push towards the $112,000 level, with any additional gains possibly driving the price to approach $115,000.
Conversely, if Bitcoin struggles to overcome the $106,200 resistance level, it may face further declines. Immediate downside support is observed near $105,000, with primary support at the $103,750 level, which correlates with the 50% Fibonacci retracement from the latest swing low of $99,250 to the high of $108,297. Should losses continue, the next key support is noted at around $102,200, with potential further declines heading towards the $100,500 support zone.
Indicators show the hourly MACD is losing upward momentum, while the Relative Strength Index indicates that Bitcoin is still above the neutral zone, reflecting a mix of bullish and bearish sentiment in the market.
