Bitcoin Faces Pressure: Could Drop Below Critical Support

Bitcoin's price struggles to maintain footing beneath $104,200, with potential for further decline if it remains under the $103,500 resistance level.

• Bitcoin has initiated a new decline, falling below the critical support at $103,500.
• The cryptocurrency is currently trading under $103,000, alongside the 100-hour Simple Moving Average.
• A significant bearish trend line is developing, with resistance positioned at $102,400 on the hourly BTC/USD chart (data sourced from Kraken).
• If it cannot overcome the $103,500 resistance area, the pair may continue its downward trajectory.

Bitcoin Price Takes a Dip

The price of Bitcoin has struggled to hold above the $104,000 support level, prompting a new decline. BTC has fallen below both the $103,500 and $102,400 thresholds, signaling a shift into a bearish trend.

This downturn saw the price even dip beneath the $101,200 support mark, hitting a low of $100,266 before consolidating its losses. A slight recovery occurred, with the price moving above the 23.6% Fibonacci retracement level from the recent decline that started at the $104,498 swing high and dropped to the $100,266 low.

At present, Bitcoin is trading below $103,000 and the 100 hourly Simple Moving Average. Should buyers attempt to rally again, they could encounter resistance near the $102,000 level, with the initial key resistance situated around $102,250. Additionally, a bearish trend line is forming, presenting resistance near $102,400 on the hourly chart for the BTC/USD pair.

In the event of a continued rally, the next resistance levels to watch will be around $103,500 and the 76.4% Fibonacci retracement level of the recent drop from the $104,498 swing high to the $100,266 low. Should the price manage to close above the $103,500 resistance, it could pave the way for further upside, potentially testing the $104,200 resistance. If bullish momentum persists, the price could eventually rise towards the $105,500 mark, with subsequent resistance levels at $106,200 and $106,500.

Potential for Further BTC Losses

Should Bitcoin fail to break through the $102,400 resistance zone, it may continue to decline. Immediate support is located around $100,500, with the first significant support level at $100,000.

The next support area is at approximately $98,800. Should losses persist, the price could slide toward the $96,500 support level in the short term. The primary support is identified at $95,500, where BTC might face challenges in recovering if it drops below this threshold.

Technical Indicators:

Hourly MACD: The MACD is picking up speed in the bearish zone.

Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently below the 50 threshold.

Major Support Levels: $100,500, followed by $100,000.

Major Resistance Levels: $102,400 and $103,500.