Key Takeaways:
• Bitcoin’s recent surge stumbled at the $107,200 resistance mark, signaling a possible return to the $100,000 support zone.
• Currently, Bitcoin trades below the $104,500 mark and the 100-hourly simple moving average.
• The trendline shows a key bearish trend with resistance hovering at around $103,650.
• If Bitcoin sustains above the $100,500 support zone, a new increase might initiate.
Shifting Market Khaleidoscope
Bitcoin, the world-renowned cryptocurrency, experienced a bout of turbulence as the price faced a tough hurdle at the $107,200 resistance mark and is now predicted to test the $100,000 support zone.
In recent events, the digital currency tried to clear the $107,200 barrier but was sent into a losing streak, bouncing below the $104,500 mark and the 100 hourly Simple Moving Average after failing to break past the resistance. This could potentially forecast a movement towards the $100,000 support zone should the downward trend continue.
The Winds of Change
In the midst of a volatile market, Bitcoin still managed to engineer a commendable ascent over the $103,500 zone. In fact, it gracefully scaled levels of $104,500 and $105,000, with bulls steering the charge over the $106,000 horizon. However, they meet resistance near the $107,200 zone, which resulted in the currency’s current period of correction.
The bearish activity near the aforementioned zone resulted in a dip below the $105,000 marker. Subsequently, the bullish progression felt the undercut of the 50% Fib retracement level from the prior rise, starting from the $100,114 low to the $107,200 peak. The immediate consequence manifested as Bitcoin’s depreciation below the levels of $104,500, marked by the 100 hourly simple moving average.
Upward Possibilities
The optimism persists, stemming from the potential for a resilience drive from the bulls backing Bitcoin. If the digital currency can hold its position above the $100,500 support zone, there is a possibility of embarking on another upward run.
On the counter end, immediate resistance hovers near the $103,000 level, with the first critical resistance set around the $103,500 level. Another resistance appears at $103,650 on the hourly chart for the BTC/USD pair. If the price can clear this $103,650 mound, it is expected to trigger a further ascent, potentially testing the following crucial resistance level at $104,500.
Additional Upsides and Possible Declines
Should Bitcoin break past the $104,500 resistance level, the cryptocurrency could soar higher, possibly reaching the ceiling of $107,200 resistance and setting a new all-time record. This success could pave the way for gains, catapulting the price towards the desired $112,500 level.
However, if Bitcoin faces an uphill climb over the $104,000 resistance zone, this could initiate a downward correction. Here, the first soft barrier could present itself around the $101,750 level or the 76.4% Fib retracement level of the prior uptouch. This was recorded from the $100,114 rock-bottom to the $107,200 zenith. The major support levels to watch are $100,500 and $101,650. Further losses could have the bears eyeing the $88,500 support.
Conclusion
Given the current scenario, it’s evident that the future of Bitcoin’s price depends heavily on its ability to stay above the key $100,500 support zone. The market dynamics underscore the pivotal role of bulls in driving and sustaining the upward momentum to triumph over the looming bearish winds. Only time will tell whether Bitcoin can successfully conquer the resistance levels that lie in its path to record new all-time highs.