Key Takeaways:
– Bitcoin (BTC) corrects after struggling to surpass the $102,000 resistance zone.
– BTC may test the $97,500 support threshold during this correction period.
– The price recently broke below a supportive trend line at $101,000.
– Potential for a fresh increase if it maintains above the $97,500 support zone.
– The first significant resistance zone is near the $101,500 level.
Bitcoin price correction begins after reaching $102,000
Bitcoin, the largest and most prominent digital asset, has recently been unable to clear a formidable resistance zone hovering around the $102,000 mark. As a result, the cryptocurrency is currently undergoing a downshift correction, testing the lower bounds of its recent trading range. A base was established and a fresh increase above the $98,800 zone was initiated, pushing past the $99,200 and $99,500 levels.
However, market bears dampened the momentum at the $102,000 zone, creating a new high at $102,500. The price is now attempting to consolidate these gains at lower levels. It is slowly stepping down beneath the 23.6% Fib retracement level, a recent uptick from the $94,315 swing low to the $102,500 swing high.
Disruption of bullish trend line support
Notably, there was a disruption in a connecting bullish trend line, which had its support pegged at $101,000 on the BTC/USD pair’s hourly chart. Presently, Bitcoin is trading beyond $98,000 and is tangential to the 100 hourly Simple Moving Average.
Looking upwards, the price could encounter resistance around the $100,500 mark. The first substantial barrier lies near the $101,500 level. If the price convincingly surpasses the $101,500 resistance, further upward momentum could be ignited, propelling the crypto asset towards the next crucial resistance at $102,000. A decisive close above this level could further elevate the price.
Rise and test of $104,000 resistance level
In a potent bull scenario, the Bitcoin price could further inflate to test the $104,000 resistance threshold. Additional gains could potentially steer the price towards the $105,000 level, a mark yet to be breached in Bitcoin’s history.
Seesaw effect if BTC fails to break through resistance
However, Bitcoin’s upward trajectory is not guaranteed. If it fails to clear the $102,000 resistance zone, a further decline could ensue. Immediate support on the downward side lies near the $98,400 level, approximately at the 50% Fib retracement level of the recent uptick from the $94,315 swing low to the $102,500 high.
First and second subsequent support zones
The first major support holds at the $97,500 level. If this position fails to hold, the following support zone is earmarked at a slightly lower level, the $96,250 mark. An accelerated loss could drive Bitcoin towards the $95,000 support in the mid-term.
The decline and potential rise rely heavily on various technical indicators such as, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). Presently, the MACD is increasingly leaning towards the bearish zone, while the RSI for BTC/USD is now below the 50 level, indicating moderate selling pressure. Overcoming these bearish signals will be key to the BTC price rediscovering upward momentum. Major support levels lie at $98,400 and $97,500, with significant resistance looming at $102,000 and $104,000.