Bitcoin has witnessed significant volatility recently, marked by a sharp decline after reaching an unprecedented high. The digital asset’s value plummeted from a peak of $104,015, dipping below the $95,000 threshold. Currently, Bitcoin is in the process of recovering these losses, but it is encountering resistance near the $99,000 level.
Key Developments in Bitcoin’s Price Action
- Bitcoin initiated a substantial downturn after achieving a new all-time high of $104,015.
- The cryptocurrency is presently trading above $97,500 and is supported by the 100 hourly Simple Moving Average.
- A critical bullish trend line is emerging, offering support at the $96,000 mark on the hourly chart for the BTC/USD pair, as reported by Kraken’s data feed.
- The pair has the potential to regain momentum if it manages to close above the pivotal $100,000 level.
Bitcoin Price Recovers Losses
Bitcoin’s price experienced an upswing as it surpassed the $98,500 resistance zone. This upward movement allowed BTC to clear resistance levels at $99,500 and $100,000. The bullish momentum even propelled it to establish a new historical high.
A pinnacle price of $104,015 was recorded, followed by a substantial correction downwards. The value fell below $100,000, further dipping beneath $95,000, ultimately testing the $92,000 level. A low point was reached at $91,800, setting the stage for a recovery in losses.
Subsequently, Bitcoin’s price ascended above the 50% Fibonacci retracement level, calculated from the $104,015 peak to the $91,800 low. Currently, Bitcoin is trading above $97,500 and is supported by the 100 hourly Simple Moving Average. Additionally, a significant bullish trend line is forming, providing support around $96,000 on the BTC/USD hourly chart.
On the upside, potential resistance could be encountered near $99,360, which corresponds to the 61.8% Fibonacci retracement level of the downward trajectory from $104,015 to $91,800. The primary resistance, however, is located around the $100,000 mark. A decisive breakthrough above this resistance level could propel the price higher.
The subsequent resistance level might be $102,000. Should Bitcoin manage a close above $102,000, it may continue to rise, potentially testing resistance at $104,000. Further gains could drive the price towards the $108,000 level.
Potential for Another BTC Downturn?
If Bitcoin struggles to breach the $100,000 resistance level, it may initiate another downward correction. Immediate support on the downside is positioned near the $97,000 level.
The first major support area is found around $96,000, while the next significant support zone hovers near $95,000. In the event of further losses, the price could potentially drop towards the $92,000 support in the short term.
Technical Indicators
- Hourly MACD: The MACD is currently gaining momentum within the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently above the 50 mark.
- Major Support Levels: $97,000, followed by $96,000.
- Major Resistance Levels: $100,000, and $102,000.
