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Calm Before the Next Surge?

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Bitcoin price started a short-term downward correction from the $106,250 area. BTC is consolidating above $100,000 and may be aiming for a new rally.

  • Bitcoin started a downward correction from the $106,250 area.
  • The price is trading below the $103,500 level and the 100 hourly simple moving average.
  • There was a breakout below a major uptrend line with support at $104,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it remains above the $100,000 support zone.

Bitcoin price holds $100,000

Bitcoin price started a good upward movement above the $100,000 area. BTC managed to rise above the $102,500 and $103,800 levels.

The high was formed at $106,246 and the price recently started a downward correction. There was a decline below the $104,000 and $103,500 levels. Moreover, there was a break below a major uptrend line with support at $104,650 on the hourly chart of the BTC/USD pair.

The low was formed at $99,538 and the price is now rising. There was a move above the 23.6% Fib retracement level of the recent decline from the high of $106,246 to the low of $99,538.

Bitcoin price is now trading below $103,800 and the 100 hourly simple moving average. On the upside, immediate resistance is near the $102,000 level. The first major resistance is near the $103,000 level or the 50% Fib retracement level of the recent decline from the $106,246 swing high to the $99,538 low.

source: BTCUSD on TradingView.com

A clear move above the $103,000 resistance level could send the price higher. The next major resistance could be $104,650. Closing above the $104,650 resistance could push the price higher. In the mentioned case, the price may rise and test the $106,250 resistance level. Any further gains could send the price towards the $108,500 level.

More losses in BTC?

If Bitcoin fails to rise above the $103,000 resistance area, it could start a downward correction. Immediate support on the downside is near the $100,500 level. The first major support is near the $100,000 level.

The next support is now located near the $98,800 area. Any further losses could send the price towards the $96,500 support level in the near term.

Technical indicators:

Hourly MACD – The MACD indicator is now losing speed in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $100,500, followed by $100,000.

Major resistance levels – $103,000 and $104,650.

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