Bitcoin price struggled to break out of the $102,000 resistance zone. BTC is correcting its gains and may test the $97,500 support zone.
Bitcoin started a downward correction from the $102,000 zone. The price is trading above $98,000 and the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair (data feed from Kraken), it broke below the connecting bullish trend line with support at $101,000. If it breaks above the $97,500 support zone, the pair could start a new rally.
Bitcoin price falls again
Bitcoin price has formed a base and started a new rally above the $98,800 zone. There was a move above the $99,200 and $99,500 levels.
The price also breached the $100,000 level, but the bears were active near the $102,000 zone. A high was formed at $102,500 and the price is currently consolidating its upside. From the swing low of $94,315 to the high of $102,500, it has slowly declined below the 23.6% Fib retracement level of the recent wave.
On the hourly chart of the BTC/USD pair, the pair broke below the connected bullish trend line with support at $101,000. Bitcoin price is currently trading above $98,000 and its 100-hour simple moving average.
On the upside, the price may face resistance near the $100,500 level. The first major resistance level is near the $101,500 level. A clear break above the $101,500 resistance could push the price higher. The next major resistance level could be at $102,000. If the price closes above the $102,000 resistance, the price could move higher.
In the above case, the price may rise and test the $104,000 resistance level. Any further rise could push the price closer to the $105,000 level.
Further losses for BTC?
If Bitcoin fails to rise above the $102,000 resistance zone, the decline could continue. Immediate support on the downside is near the $98,400 level, or the 50% Fib retracement level of the recent wave from the swing low of $94,315 to the high of $102,500.
The first major support is near the $97,500 level. The next support is currently located near the $96,250 zone. Any further losses could send the price towards the $95,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is currently pacing in the bearish zone.
Hourly RSI (Relative Strength Index) – BTC/USD’s RSI is currently below the 50 level.
Major support level – $98,400, then $97,500.
Key resistance levels – $102,000 and $104,000.
