Bitcoin price started a downside correction below $112,000. BTC is showing bearish signs and upside might be capped near $115,000.
Bitcoin Price Faces Uphill Task
In the last analysis, we saw the start of a downside correction below the $118,500 zone. The price declined steadily below the $116,000 and $115,000 levels. The decline gained pace below the 23.6% Fib retracement level of the upward move from the $74,501 swing low to the $123,640 high.
BTC even settled below the $115,000 pivot level and the 50-day simple moving average (blue). Finally, the price found support near the $107,500 region. The price started a consolidating phase and recovered some losses to trade above $110,000.
Bitcoin is now still trading below the $115,000 pivot level and the 50-day simple moving average (blue). Besides, there is a key bearish trend line forming with resistance at $112,200 on the daily chart.
These are bearish signs, and the current price action calls for more losses. If the bulls attempt to restart increase, they could face many hurdles. On the upside, immediate resistance is near the $112,000 level. The first major hurdle is $112,200 and the trend line.
The next key sell zone could be near the 50-day simple moving average (blue) at $115,000. A close above $115,000 and the 50-day simple moving average (blue) might decrease the current selling pressure, and the price might start a decent increase.
In the stated case, the bulls could attempt a move toward $117,500. The main hurdle for them could be $120,400. A close above the $120,400 level could restart uptrend, and BTC price might rise toward $123,500 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 $112,000 or $115,000, there could be more losses. Immediate support is near $108,800 level. The first major support is near the $107,500 level.
A downside break and close below $107,500 might increase selling pressure on BTC. In the stated case, the price could decline toward the 50% Fib retracement level of the upward move from the $74,501 swing low to the $123,640 high at $99,000.
If there is no bounce from $99,000 or $100,000, the price could accelerate lower. In the stated case, the price could test $93,250 support. Any more losses might call for the test of $86,000.
Overall, Bitcoin is consolidating losses above $170,500. To start a fresh increase, BTC must reclaim $112,000 and then $115,000. If not, the price could soon drop below $107,500 and continue lower.
