Bitcoin has entered a short-term corrective phase after reaching a new record high. Currently, the cryptocurrency is stabilizing above the $101,000 level, with potential for another upward movement.
Following a strong ascent that took Bitcoin above the $102,000 threshold, the price surged past $104,500 and $103,800, ultimately peaking at $109,112. However, this upward momentum has faced a setback, leading to a retracement below key levels such as $104,500 and $103,500, and even dipping underneath $102,000. A recent low was established at approximately $100,114, from which Bitcoin has begun to recover, approaching the 23.6% Fibonacci retracement level of the aforementioned decline.
At present, Bitcoin is trading beneath the $104,500 level and the 100-hour simple moving average. Immediate resistance is situated around $104,000, coinciding with a bearish trend line that has formed on the hourly chart of the BTC/USD trading pair. A decisive breach above the $104,500 resistance could unlock further momentum towards the next resistance at $106,500. Should this level be overcome, Bitcoin might then aim to test $108,000, with any additional strength potentially leading to a rise toward $109,500.
Conversely, if Bitcoin is unable to surpass the $104,000 resistance, it risks initiating a downward correction. Support in this scenario is first found near $100,500, followed by a significant level at $100,000. Should further declines occur, the $98,800 level could serve as the next line of defense, with additional losses possibly pushing the price down to $96,500 in the near term.
In terms of technical indicators, the hourly MACD is showing signs of waning bullish momentum, while the RSI for BTC/USD is currently below the neutral 50 level, indicating potential bearish sentiment.
