Bitcoin price failed at $110,000 and corrected gains. BTC is now testing the 50-day SMA and must stay above $103,000 to start a fresh increase.
Bitcoin Price Reaches Key Juncture
Recently, Bitcoin price made another attempt to gain pace for a move above the $110,000 resistance zone. However, the bears protected an upside break and gains above the $110,500 zone. A high was formed at $110,680 and the price started a downside correction.
There was a move below the $108,000 and $107,000 levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $100,520 swing low to the $110,680 high. Finally, the price tested the $103,000 support zone and the 50-day simple moving average (blue).
Bitcoin price is now consolidating near the 50-day simple moving average (blue). There is also a key bullish trend line forming with support at $102,500 on the same chart.
The current price action suggests that the price is struggling to stay above the $103,000 support zone. If the bulls remain active above the $103,000 zone, they could attempt a fresh increase. On the upside, immediate resistance is near the $105,500 level. The first major resistance is near the $106,500 level.
The main resistance could be near the $108,280 zone. A close above the $108,280 resistance might spark more upsides. In the stated case, the price could attempt a move toward the $110,800 level. The next stop BTC price could be the $112,000 level, above which the price could rise toward the $115,000 level. Any more gains might call for a test of $120,000.
Downside Break In BTC?
If Bitcoin bulls fail to protect the $103,000 support and the 50-day simple moving average (blue), there could be a bearish break. Immediate support is near the $102,500 level and the trend line. It is close to the 76.4% Fib retracement level of the upward move from the $100,520 swing low to the $110,680 high.
A downside break and close below the $102,500 support might spark more losses and send the price further lower. In the stated case, Bitcoin could test the $98,000 support and the 1.236 Fib extension level of the upward move from the $100,520 swing low to the $110,680 high.
The next key support could be $94,250. If the bulls fail to protect the $94,250 zone, the price could start a major decline. In the stated case, the price could test the $90,000 support. Any more losses might call for the test of the $82,000 support.
Overall, Bitcoin is struggling to stay above the key support at $103,000 and $102,500. If BTC dips further, there could be a sharp decline below the $100,000 support level.
