Bitcoin price failed to stay above the $100,000 area. BTC is correcting gains and may have difficulty staying above the $96,000 support area.
- Bitcoin started a new decline from the $102,500 resistance area.
- The price is trading below $100,000 and the 100 hourly simple moving average.
- There was a breakout below the connecting uptrend line with support at $98,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if it remains above the $95,500 support area.
Bitcoin price drops below $100,000
Bitcoin price started a good upward movement above the $98,500 resistance area. BTC managed to rise above the $99,200 and $100,00 resistance levels. However, it failed to cross the $102,500 resistance area.
The high was formed at $102,759 and the price started a new decline. There was a clear move below the $100,000 support area. Moreover, there was a break below the connecting uptrend line with support at $98,500 on the hourly chart of the BTC/USD pair.
The pair even traded below $96,500. A bottom was formed at $96,100 and the price is now consolidating losses under the 23.6% Fibonacci retracement level of the recent decline from the swing high of $102,759 to the low of $96,100.
Bitcoin price is now trading below $98,500 and the 100 hourly simple moving average. On the upside, immediate resistance is near the $97,500 level. The first major resistance is near the $98,500 level. A clear move above the $98,500 resistance level could send the price higher.
The next major resistance could be $99,500 or the 50% Fib retracement level of the recent decline from the high of $102,759 to the low of $96,100. A close above the $99,500 resistance level could send the price higher. In the mentioned case, the price may rise and test the $102,500 resistance level. Any further gains could send the price towards the $104,000 level.
Another drop in BTC?
If Bitcoin fails to rise above the $97,500 resistance area, it could start a new decline. Immediate support on the downside is near the $96,500 level.
The first major support is near the $96,100 level. The next support is now near the $95,550 area. Any further losses could send the price towards the $93,500 support level in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key Support Levels – $96,500, followed by $95,500.
Major resistance levels – $97,500 and $98,500.
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