Bitcoin has begun a new downturn, testing the $103,200 level. Currently, Bitcoin (BTC) is showing signs of recovery and may target an upward move above the $106,800 resistance threshold.
The cryptocurrency initially declined below key levels of $106,800 and $105,500, trading around $105,800, which coincides with the 100-hour Simple Moving Average. A significant break occurred above a bearish trend line with resistance at $105,000 on the hourly chart for the BTC/USD pair, sourced from Kraken. If the pair manages to surpass the $106,800 resistance area, it could initiate a fresh upward trend.
Following its struggle to breach the $110,000 resistance zone, Bitcoin experienced a decline, dropping below the $107,000 and $106,000 support levels, and even dipping beneath $104,000. Ultimately, it tested the $103,200 region, forming a low at $103,078. However, the price is now recovering from these losses, having moved above the 23.6% Fibonacci retracement level of the recent decline from the $110,411 high to the $103,078 low.
Bitcoin is currently trading near $105,800, supported by the 100-hour Simple Moving Average. Immediate resistance is observed at the $106,000 level, while the first significant resistance is at $106,750, which aligns with the 50% Fibonacci retracement level. A further increase could see Bitcoin testing the $107,500 resistance, and if it closes above this level, it might continue to rise, potentially reaching the $108,000 resistance level. Additional gains could drive the price towards the $110,000 mark.
Conversely, if Bitcoin fails to break through the $106,750 resistance area, it may face another decline. Immediate support is located around $105,000, with major support levels at $104,200 and the $103,200 zone. Further losses could see the price approach the $102,500 support in the near term, with critical support established at $100,000, below which Bitcoin may gain bearish momentum.
Technical indicators reveal that the hourly MACD is gaining momentum within the bearish zone, while the hourly Relative Strength Index (RSI) for BTC/USD is positioned above the 50 level. Key support levels are noted at $104,200 and $103,200, with major resistance levels identified at $106,750 and $107,500.
