Bitcoin price started a downside correction below $115,000. BTC is down over 15% and might extend losses toward the $100,000 support zone.
Bitcoin Price Signals Larger Downside Correction
In the last analysis, we saw the start of a downside correction from the $123,500 zone. The price declined steadily below the $120,000 and $118,000 levels. The bears were able to push the price lower and capped upside.
There was a clear move below a key bullish trend line with support at $117,400 on the daily chart, opening the doors for a larger decline. BTC dipped below the 23.6% Fib retracement level of the upward move from the $74,501 swing low to the $123,640 high.
Bitcoin is now trading below the $115,000 pivot level and the 50-day simple moving average (blue). These are bearish signs, and the current price action calls for more losses.
In the short term, BTC could consolidate or recover some ground, but upside could be capped. On the upside, immediate resistance is near the $110,000 level. The first major hurdle is $112,000 (a multi-touch zone).
The next key sell zone could be near the 50-day simple moving average (blue) at $115,500. A close above $115,500 and the 50-day simple moving average (blue) might negate the current bearish bias and start a decent increase.
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 uptrend, and BTC price might rise toward $123,500 level. Any more gains might call for a test of $125,000.
Downside Continuation In BTC?
If Bitcoin bulls fail to push the price above $112,000, there could be more losses. Immediate support is near $107,800 level. The first major support is near the $105,500 level.
A downside break and close below $105,500 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 the bulls fail to protect $99,000 zone, the price could start a major decline. In the stated case, the price could test $95,000 support. Any more losses might call for the test of $92,000.
Overall, Bitcoin is correcting gains below $112,000 and $110,000. If the bears remain in action, the price could decline further toward $105,500 and $99,000. On the upside, the main breakout zone could be $115,500.
