Bitcoin’s price has entered a correction phase after hitting $107,000, with the cryptocurrency now hovering close to the $100,000 support zone. While the pullback raises concerns, analysts believe this could be a consolidation phase before BTC launches its next rally.
BTC Price Movement: A Closer Look
After climbing above $105,500 and hitting a high of $107,080, Bitcoin faced significant resistance. Sellers became active above $107,000, leading to a price dip below $105,000. A breakdown of a bullish trend line near $104,800 further pushed BTC toward the $100,700 zone, where it is now consolidating.
Bitcoin is currently trading below the 100-hour Simple Moving Average (SMA) and the $103,500 level.
Key Resistance Levels to Watch
- Immediate Resistance: $102,200, coinciding with the 23.6% Fibonacci retracement of the $107,080 to $100,700 dip.
- First Major Resistance: $104,000, aligning with the 50% Fibonacci retracement level.
- A breakout above $104,000 could propel BTC toward $105,000 and possibly $106,200, with further gains leading to a retest of the $107,000 high.
Support Levels: Can BTC Hold Above $100K?
Should Bitcoin fail to overcome immediate resistance, the downside correction may continue. Key support zones include:
- First Support: $100,500
- Major Support Zone: $100,000
- Critical Support Levels: $88,500 and $86,500, should selling pressure intensify.
Technical Indicators Signal Bearish Momentum
- MACD (Hourly): The Moving Average Convergence Divergence indicator is currently accelerating in the bearish zone.
- RSI (Hourly): The Relative Strength Index is below 50, indicating bearish sentiment.
Is This a Launchpad for a New Rally?
Despite the recent correction, Bitcoin’s ability to hold above $100,000 suggests underlying strength. Analysts predict that maintaining this key support could set the stage for another rally toward $107,000 and beyond.
As Bitcoin consolidates, traders are eyeing breakout opportunities while closely monitoring macroeconomic factors and market sentiment.
