Bitcoin’s recent price movements have seen the cryptocurrency struggling to establish a foothold above critical resistance levels of $112,500 and $113,000. Currently, BTC is trending downward and could potentially see a further decline below the $108,000 threshold.
After encountering trouble breaking the $113,000 barrier, Bitcoin initiated a fresh downward trajectory. Over recent sessions, it slipped through the support levels of $112,000 and $110,500, entering what analysts describe as a bearish phase. Remarkably, the price even dipped below $108,000, hitting a low of $107,483. At this point, Bitcoin is attempting to consolidate these losses, trading beneath the 23.6% Fibonacci retracement level from its recent peak of $115,975 to the low of $107,483.
Presently, Bitcoin is maintaining its position below $110,000 and the widely followed 100-hour Simple Moving Average. Additionally, a bearish trend line is forming, with a resistance point identified at $110,500 on the hourly chart for the BTC/USD trading pair. The immediate resistance level to watch is near $109,500, followed closely by the fundamental $110,000 mark. Surpassing these could give bulls an opportunity to push prices higher towards the anticipated $111,800 resistance, which coincides with the 50% Fibonacci retracement level of the recently noted decline.
However, should Bitcoin continue to struggle against the resistance zone at $110,000, it might initiate a fresh round of declines. Immediate support is positioned near $108,000, with major support levels identified around $107,500 and further at $106,200. Should these levels fail to hold, the cryptocurrency could potentially drop to around $105,500. The primary support region is noted at $103,200, below which Bitcoin would likely face significant challenges in terms of recovery in the short term.
Technical analysis indicators also suggest a bearish sentiment. The hourly MACD is gaining pace in the negative zone, while the hourly RSI has fallen below the vital 50 level, indicating increased selling pressure.
In summary, Bitcoin is at a critical juncture. As it navigates these support and resistance levels, traders and investors will be closely watching for breakout movements that could dictate the next phase of its market trajectory.
