In the latest development, the Bitcoin price has taken a fresh hit, plunging below the $98,000 support zone. The world’s largest cryptocurrency by market capitalization, Bitcoin (BTC), has been unable to maintain its pace above the coveted $100,000 mark, instigating yet another downside correction. The price dipped towards the $95,000 level, with a low even being recorded at $94,140.
However, a recovery wave soon followed this decline, pushing the price above the $96,500 level. This surge in price climbed above the 50% Fibonacci retracement level of the downward wave, which had stemmed from the $100,432 swing high to the $94,140 low. Despite this recovery, Bitcoin continues to trade below $100,000 and the 100 hourly Simple Moving Average (SMA), indicating that the market may still be in the grips of bearish sentiment.
Key resistance for Bitcoin lies near the $98,800 level. The hourly chart of the BTC/USD pair indicates a connecting bearish trend line, with resistance also situated at this level. However, if a clear move above this resistance level is achieved, we could see a surge in Bitcoin’s price. The next significant resistance to look out for is the $100,000 mark. If the price manages to close above this point, it could potentially trigger a further upward move, possibly even testing the $104,200 resistance. Beyond this, any additional gains could propel the price towards the $108,000 level.
However, should Bitcoin fail to break past the $98,800 resistance zone, we could potentially be looking at another downside correction. Immediate support on the downside is located near the $96,500 level. The first major support is situated near the $95,500 level, with the next support zone hovering around the $94,200 mark. Any further losses could potentially push the price towards the $92,000 support in the near term.
From a technical standpoint, the Moving Average Convergence Divergence (MACD) on the hourly chart is currently losing pace in the bearish zone. The Relative Strength Index (RSI) for BTC/USD now lies below the 50 level, indicating a tilt towards the selling side. The major support levels to watch out for are $96,500 and $95,500, while the major resistance levels are placed at $98,000 and $98,800.
As the market moves into another day of trading, investors are keeping a close eye on these key support and resistance levels. As always, the cryptosphere remains a volatile and unpredictable landscape, and these price movements should be monitored closely.
