Bitcoin’s price is currently facing challenges as it struggles to break the $100,000 barrier. With the market consolidating, BTC might make another attempt to rise, especially from its current support level around the $95,000 mark. Let’s delve deeper into the factors influencing Bitcoin’s price and potential future movements.
Current Market Overview
- Bitcoin recently retraced its gains, revisiting the $95,000 support zone.
- The cryptocurrency is trading below the critical $96,500 mark and the 100 hourly Simple Moving Average (SMA).
- A short-term bearish trend line is emerging, presenting resistance at $96,250 on the hourly BTC/USD chart (data sourced from Kraken).
- If the pair can surpass the $96,500 resistance zone, a bullish momentum might ensue.
Bitcoin Price Dips Again
Bitcoin recently attempted to break through the $98,000 resistance level, but persistent selling pressure from bears caused BTC to relinquish most of its gains. The price experienced a dip beneath the $96,500 support area, and even briefly fell below the $95,000 mark, reaching a low of $94,450. Since then, Bitcoin has been consolidating its losses with a slight recovery above the $95,200 level.
The price managed to test the 50% Fibonacci retracement level of the recent decline from the $97,396 swing high to the $94,450 low. Despite this, Bitcoin remains below the $96,500 level and the 100 hourly Simple Moving Average. Resistance could be encountered around $96,250, where a new short-term bearish trend line is forming on the BTC/USD hourly chart.
This trend line aligns closely with the 61.8% Fibonacci retracement level of the previous downward move. The first significant resistance is anticipated around the $96,800 level. A successful breakout above this point could propel the price higher.
The subsequent major resistance level to watch is $98,000. Should Bitcoin close above this threshold, it might pave the way for further gains, potentially testing $98,800. Further upward movement could see the price nearing the much-anticipated $100,000 mark.
Potential for Another Decline in BTC?
Should Bitcoin fail to surpass the $96,250 resistance zone, it may trigger another downward correction. Immediate support lies near the $95,000 level. The first substantial support level can be found around $94,500, with the next significant support at the $93,200 zone. If the selling pressure continues, Bitcoin’s price could potentially drop towards the $91,500 support level in the near term.
Technical Indicators
- Hourly MACD: The MACD is currently losing momentum within the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD stands below the 50 level, indicating a lack of bullish strength.
- Major Support Levels: $95,000, followed by $94,500, are key support levels to monitor.
- Major Resistance Levels: Resistance is expected around $96,250 and $98,000.
As Bitcoin continues to navigate the volatile market, traders and investors should closely monitor these levels for potential trading opportunities and risk management.
