Bitcoin Price Nosedives—Profit-Taking Sparks Sudden Correction

Aayush Jindal

1 month ago

2 mins read

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Bitcoin price started a fresh decline below the $105,500 zone. BTC is now consolidating and struggling to stay above the $103,200 support.

Bitcoin started a fresh decline below the $106,500 and $105,500 levels.
The price is trading below $106,500 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance at $106,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh recovery wave if it clears the $105,500 resistance zone.

Bitcoin Price Dips Sharply

Bitcoin price started a fresh decline after it failed to clear the $110,500 resistance zone. BTC declined below the $107,500 and $106,500 support levels.

The price even dipped below the $104,200 support level. Finally, it tested the $103,000 zone. A low was formed at $103,078 and the price is now consolidating losses below the 23.6% Fib level of the recent decline from the $110,273 swing high to the $103,078 low.

Bitcoin is now trading below $105,500 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance at $106,600 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $104,200 level. The first key resistance is near the $105,500 level. The next key resistance could be $106,600 and the 50% Fib retracement level of the recent decline from the $110,273 swing high to the $103,078 low.

Bitcoin Price — Source: BTCUSD on TradingView.com

A close above the $106,600 resistance might send the price further higher. In the stated case, the price could rise and test the $108,000 resistance level. Any more gains might send the price toward the $110,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $105,500 resistance zone, it could start another decline. Immediate support is near the $103,000 level. The first major support is near the $102,350 level.

The next support is now near the $101,500 zone. Any more losses might send the price toward the $100,500 support in the near term. The main support sits at $100,000, below which BTC might gain bearish momentum.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $103,000, followed by $102,350.

Major Resistance Levels – $104,200 and $105,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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