The Bitcoin market has encountered challenges in breaking past the crucial $102,000 resistance zone. As a result, BTC is currently undergoing a corrective phase, with a potential test of the $97,500 support zone on the horizon. This pivotal moment in Bitcoin trading can set the tone for upcoming market trends.
Bitcoin Price Faces Resistance: A Detailed Overview
- Bitcoin initiated a downward correction after being unable to surpass the $102,000 resistance level.
- Currently, the price remains above $98,000, maintaining its position over the 100 hourly Simple Moving Average.
- A breach occurred below a connecting bullish trend line, which held support at $101,000 on the hourly BTC/USD chart (data sourced from Kraken).
- If Bitcoin sustains above the $97,500 support zone, a fresh upward trajectory could emerge.
Bitcoin Price Dips Again: Analyzing Market Movements
Bitcoin price recently established a foundation and initiated a renewed ascent beyond the $98,800 zone. The cryptocurrency experienced upward momentum, surpassing the $99,200 and $99,500 levels. Furthermore, Bitcoin briefly broke through the $100,000 mark, only to encounter a robust resistance near the $102,000 zone. A peak was observed at $102,500, and since then, the price has been in a consolidation phase, gradually declining below the 23.6% Fibonacci retracement level, measured from the $94,315 swing low to the $102,500 high.
Moreover, a breakdown was seen below a connecting bullish trend line, with support at $101,000 on the hourly BTC/USD chart. Presently, Bitcoin is trading above $98,000, maintaining its stance over the 100 hourly Simple Moving Average, indicating a balanced yet cautious market sentiment.
Potential Upside: Key Resistance Levels
On the upside, Bitcoin price could encounter resistance around the $100,500 mark. The initial significant resistance is expected near the $101,500 level. A decisive move beyond this resistance point could propel the price higher, with the subsequent resistance situated at $102,000. Successfully closing above the $102,000 resistance might pave the way for Bitcoin to test the $104,000 level. If the bullish momentum persists, Bitcoin may aim for the $105,000 resistance level in the near future.
Potential for More Losses in BTC: What to Watch For
Should Bitcoin fail to overcome the $102,000 resistance zone, the downward trend might continue. Immediate support on the downside is anticipated near the $98,400 level, aligning with the 50% Fibonacci retracement level of the recent upward movement from the $94,315 swing low to the $102,500 high.
The primary support is located around the $97,500 level, with subsequent support emerging near the $96,250 zone. Should the price experience further declines, it might approach the $95,000 support level in the short term, necessitating careful market monitoring.
Technical Indicators: Key Insights for Traders
- Hourly MACD – The MACD is currently gaining momentum within the bearish zone, suggesting increased selling pressure.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has dipped below the 50 level, indicating a bearish sentiment.
Summary of Key Levels
- Major Support Levels – $98,400, followed by $97,500.
- Major Resistance Levels – $102,000 and $104,000.
