Bitcoin continues to display resilience, maintaining its position above the crucial $94,200 support zone. This stability suggests the possibility of a fresh upward momentum, potentially allowing BTC to surpass the $98,000 resistance threshold.
Understanding the Recent Bitcoin Price Movements
- Bitcoin experienced a downward trend, breaking below the $98,000 support level.
- The current trading price is under $97,500, below the 100 hourly Simple Moving Average.
- A significant bearish trend line is forming, with resistance at $97,800 on the hourly BTC/USD chart (data from Kraken).
- If the pair manages to close above the $98,000 resistance zone, momentum could be regained.
Bitcoin Price Stays Firm Above Support Levels
Recently, Bitcoin’s price extended its losses, dipping below the $98,000 support zone and even spiking below $95,000. A bottom was formed around $94,314, prompting the price to consolidate its losses. In a recovery attempt, the price ascended above the $96,650 level, climbing past the 61.8% Fibonacci retracement level from the $98,267 swing high to the $94,314 low.
At present, Bitcoin trades below $98,000 and remains under the 100 hourly Simple Moving Average. On the upward trajectory, resistance is anticipated near the $97,500 mark, which aligns closely with the 76.4% Fibonacci retracement level of the downward wave from the $98,267 high to the $94,314 low.
Resistance and Potential Breakout Levels
The initial major resistance is positioned near the $98,000 level. Additionally, a crucial bearish trend line is evident, with resistance around $97,800 on the hourly BTC/USD chart. A decisive move above the $98,000 resistance could trigger a price increase, with the next significant resistance at $98,800. Surpassing the $98,800 resistance might propel the price into higher territories, potentially testing the $100,000 resistance level. Further gains could drive the price towards the $102,000 mark.
Possibility of Another Decline in BTC
If Bitcoin fails to breach the $98,000 resistance zone, it might encounter another corrective phase. Immediate support is visible near the $96,500 level, followed by a significant support level at $95,000. The subsequent support zone is around $94,250. If the price continues to drop, it may approach the $92,000 support in the near term.
Technical Indicators
Hourly MACD: The MACD is showing signs of deceleration in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently below the 50 level.
Major Support Levels: $96,500, followed by $95,000.
Major Resistance Levels: $98,000, and $98,800.
This analysis provides a comprehensive view of the current Bitcoin market dynamics, helping traders and investors make informed decisions. As always, staying updated with market trends and technical indicators is crucial for navigating the volatile cryptocurrency landscape.
