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Bitcoin price started another decline and traded below the $98,000 support. BTC fell towards the $95,000 level and is currently correcting losses.
- Bitcoin started a new decline below the $98,000 support zone.
- The price is trading below $98,000 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $98,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could regain momentum if it closes above the $98,800 resistance zone.
The price of Bitcoin takes a hit
Bitcoin price failed to break above the $100,000 level. BTC started another downside correction and traded below the $98,000 level. There was a move below the $96,500 support.
The price even rose below $95,000. A low was formed at $94,140 and the price started a recovery wave. There was a move above the $96,500 level. The price rose above the 50% Fib retracement level of the descending wave from the swing high of $100,432 to the low of $94,140.
Bitcoin price is now trading below $100,000 and the 100 hourly simple moving average. On the upside, the price may face resistance near the $98,000 level. It is near the 61.8% Fib retracement level of the descending wave from the swing high $100,432 to low $94,140.
The first key resistance is near the $98,800 level. There is also a connecting bearish trend line forming with the resistance at $98,800 on the hourly chart of the BTC/USD pair.
A clear move above the $98,800 resistance could push the price higher. The next key resistance could be $100,000. A close above the $100,000 resistance could push the price further higher. In this case, the price could rise and test the $104,200 resistance level. Any further gains could send the price towards the $108,000 level.
Another BTC drop?
If Bitcoin fails to break out of the $98,800 resistance zone, another downside correction could begin. Immediate downside support is near the $96,500 level.
The first major support is near the $95,500 level. The next support is now near the $94,200 zone. Any further losses could send the price towards the $92,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels: $96,500, followed by $95,500.
Major resistance levels: $98,000 and $98,800.