Bitcoin price started a fresh decline from $123,500. BTC is down over 10% and might extend losses toward the $110,000 support zone.
Bitcoin Price Starts Key Downside Correction
In the last analysis, we saw a fresh increase in Bitcoin price above $118,500. The bulls were able to pump the price above the $120,000 and $122,000 levels. The price even traded to a new all-time high above the $123,500 level.
A high was formed at $123,640 before the price started a downside correction. There was a move below $122,000 and $120,000. BTC dipped below the 61.8% Fib retracement level of the upward move from the $112,210 swing low to the $123,640 high.
Bitcoin even declined below a key bullish trend line with support at $116,500 on the daily chart. Besides, the price is now trading below the 50-day simple moving average (blue) and the 76.4% Fib retracement level of the upward move from the $112,210 swing low to the $123,640 high.
These are bearish signs and suggest chances of more downside. In the short term, BTC could consolidate or recover some ground. On the upside, immediate resistance is near the $115,000 level. The first major resistance is $116,500 and the 50-day simple moving average (blue).
A close above $116,500 and the 50-day simple moving average (blue) might spark more upside. In the stated case, the price could attempt a move toward $118,000. The main hurdle for the bulls could be $120,000.
A close above the $120,000 level could restart the uptrend, and BTC price might rise toward $122,500 level. Any more gains might call for a test of $125,000.
More Losses In BTC?
If Bitcoin bulls fail to push the price above $118,000, there could be more losses. Immediate support is near $113,000 level. The first major support is near the $112,500 level.
A downside break and close below $112,500 might increase selling pressure on BTC. In the stated case, the price could decline toward the 1.236 Fib extension level of the upward move from the $112,210 swing low to the $123,640 high at $109,500.
If the bulls fail to protect $109,500 zone, the price could start a major decline. In the stated case, the price could test $106,500 support. Any more losses might call for the test of $105,000.
Overall, Bitcoin is correcting gains below $118,000 and $115,000. If the bears remain in action, the price could decline further toward $110,000 and $109,500. On the upside, the main breakout zone could be $118,000.
