The price of Bitcoin has recently entered a downward trend, dropping below the $103,000 mark. Currently, BTC is in a phase of consolidation and may face challenges in surpassing the resistance at $103,500.
With Bitcoin trading under $102,500 and below the 100-hour Simple Moving Average, a significant bearish trend line has emerged, indicating resistance at $101,250 on the hourly chart of the BTC/USD pair, sourced from Kraken. If the price maintains its position above the $100,000 threshold, it could potentially initiate a new upward movement.
Bitcoin's decline has been notable, beginning with a drop beneath the $105,500 level. The cryptocurrency accelerated its decline, falling below both the $104,200 and $103,000 levels, with a definitive move below the $102,000 support level. The price eventually reached a low of $98,277, after which it entered a consolidation phase.
There was a slight recovery observed above the 23.6% Fibonacci retracement level from the recent high of $106,470 to the low of $98,277. However, bearish momentum remains strong beneath the $101,200 level. Currently, Bitcoin is trading below $102,000 and the 100-hour Simple Moving Average, with immediate resistance identified near $101,250.
The first significant resistance level is located around $102,500, which corresponds to the 50% Fibonacci retracement level from the recent high to low mentioned earlier. A breakthrough above the $103,500 resistance could propel Bitcoin's price higher, potentially testing the $105,000 resistance level, with further gains possibly reaching up to $106,200.
On the other hand, if Bitcoin cannot overcome the $102,000 resistance zone, another decline may ensue. Immediate support is found near the $100,150 level, while major support is at $98,500, followed by $96,500. Should the downward trend continue, the price might approach the $95,500 support level, with critical support sitting at $95,000, beneath which Bitcoin could struggle to find buyer interest.
In terms of technical indicators, the hourly MACD is showing signs of losing momentum within the bearish territory, while the hourly Relative Strength Index (RSI) for BTC/USD is currently below the 50 mark. Key support levels to watch are $100,150 and $100,000, while crucial resistance levels stand at $101,250 and $103,500.
