The Bitcoin market is currently experiencing a phase of correction, with prices adjusting below the significant $96,500 resistance level. Presently, Bitcoin is trading beneath the $95,000 mark, and it is anticipated to encounter challenges as it approaches the $95,750 resistance.
Key Highlights of Bitcoin’s Recent Movements
- Bitcoin initiated a downward correction from the vicinity of $98,880.
- The cryptocurrency is presently trading below the $96,000 threshold and the 100-hourly Simple Moving Average (SMA).
- There was a breakout above a short-term bearish trend line with resistance at $94,200 on the hourly chart for the BTC/USD pair (data sourced from Kraken).
- The potential for another upward movement exists if Bitcoin successfully surpasses the $95,750 resistance zone.
Bitcoin Price Correction: A Closer Look at the Market Dynamics
Bitcoin’s price encountered difficulties in sustaining gains above the $98,800 and $99,000 levels, leading to a corrective phase. This adjustment saw the cryptocurrency dip below the $97,000 and $96,000 marks, with a further decline below $95,000. A low point was noted at $92,550, after which the price began to recover.
There was a notable movement above the $93,800 resistance level, with the price surpassing the 23.6% Fibonacci retracement level from the $98,880 swing high to the $92,550 low. Additionally, a break occurred above a short-term bearish trend line, registering resistance at $94,200 on the BTC/USD hourly chart.
Currently, Bitcoin is trading beneath $96,000 and the 100-hourly SMA. On the upward trajectory, the price is expected to confront resistance around the $95,200 level, with the first significant resistance positioned near $95,750. This point coincides with the 50% Fibonacci retracement level from the $98,880 swing high to the $92,550 low.
Potential Upside for Bitcoin
A decisive movement above the $95,750 resistance could propel Bitcoin’s price higher. The subsequent key resistance level is anticipated at $97,350. Achieving a close above this resistance might trigger further gains, potentially allowing Bitcoin to rise and test the $98,880 resistance level. Continued upward momentum could drive the price towards the $100,000 mark.
Considering Another Downturn for Bitcoin?
In the event that Bitcoin is unable to surpass the $95,750 resistance zone, it may initiate a renewed downward correction. Immediate support on this downward path is located near the $93,800 level, with the first major support at $92,500.
The subsequent support zone is around $90,000, with additional losses potentially driving the price towards the $88,000 support level in the near term.
Technical Indicators and Market Outlook
- Hourly MACD: The MACD indicator is gaining momentum within the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD currently sits below the 50 level.
- Major Support Levels: Positioned at $93,800 and subsequently at $92,500.
- Major Resistance Levels: Identified at $95,750 and further at $97,350.
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