Bitcoin’s value continues to display bearish indicators beneath $112,000. BTC is currently trying to bounce back but may encounter obstacles around the $110,500 mark.
- Bitcoin commenced a new drop below the $112,000 range.
- The value is trading under $110,500 and the 100-hour Simple Moving Average.
- A breakout occurred above a short-term contracting triangle with resistance at $108,800 in the hourly chart of the BTC/USD currency pair (data from Kraken).
- If the pair remains under the $110,500 range, it may initiate another decline.
Bitcoin Value Begins Consolidation
Bitcoin’s price made an effort to initiate a new recovery phase from the $107,350 region. BTC successfully surpassed the resistance levels at $108,200 and $108,400.
The price moved past the 23.6% Fibonacci retracement level of the significant drop from the $113,457 swing high to the $107,352 low. Additionally, a breakout transpired above a short-term contracting triangle with resistance at $108,800 on the hourly chart of the BTC/USD pair.
Nevertheless, sellers remain active around $109,500. The value is currently consolidating near $109,500. Bitcoin is trading below $110,000 and the 100-hour Simple Moving Average.
Immediate resistance on the upside is around the $109,500 level. The first crucial resistance is close to the $110,200 level. The next resistance could be at $110,500 or the 50% Fibonacci retracement level of the significant drop from the $113,457 swing high to the $107,352 low.
A closure above the $110,500 resistance may propel the price further upward. In such a scenario, the value could ascend and challenge the $111,650 resistance level. Further gains might push the price toward the $112,500 mark. The primary target could be $113,500.
Another Drop for BTC?
If Bitcoin does not manage to rise above the $110,500 resistance zone, it may trigger a new decline. Immediate support is located near the $108,800 level. The first significant support is close to the $108,200 level.
The next support is now situated around the $107,350 area. Additional losses could drive the price toward the $106,500 support in the short term. The main support is at $105,500; dropping below this level could result in a sharp decline for BTC.
Technical Indicators:
Hourly MACD – The MACD is presently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 mark.
Key Support Levels – $108,800, followed by $108,000.
Key Resistance Levels – $109,500 and $110,500.
