Bitcoin price started a fresh increase above the $105,000 zone. BTC is now consolidating above the 50-day SMA but struggles to gain bullish momentum.
Bitcoin Price Could Dip Before Fresh Increase
After a daily close above the $100,000 level, Bitcoin price started a fresh increase. There was a steady increase above the $103,500 and $105,500 resistance levels. More importantly, BTC surpassed a bullish flag pattern with resistance at $108,500 on the daily chart.
It opened the doors for more gains above $109,000. However, the bears remained active above the $110,000 level and the price struggled to gain bullish momentum. As a result, the price started a consolidation phase from the $110,700 high.
Bitcoin price declined below $109,500 and tested the 23.6% Fib retracement level of the upward move from the $98,579 swing low to the $110,700 high. The bulls seem to be active near the same channel’s trend line and the price is stable above the 50-day simple moving average (blue).
If the bulls remain active above the $106,000 zone, they could attempt a fresh increase. On the upside, immediate resistance is near the $108,8000 level. The first major resistance is near the $110,000 level.
A close above the $110,000 resistance might spark more upsides. In the stated case, the price could attempt a move toward the $112,500 level. The next stop BTC price could be the $113,200 level, above which the price could rise toward the $115,000 level. Any more gains might call for a test of $120,000.
Drop In BTC?
If Bitcoin bulls fail to push the price above $108,800, there could be a bearish reaction. Immediate support is near the $106,400 level and the 50-day simple moving average (blue).
A downside break and close below the $106,400 support might spark more losses and send the price further lower. In the stated case, Bitcoin could test the $103,200 support. The next key support could be $101,400 or the 76.4% Fib retracement level of the upward move from the $98,579 swing low to the $110,700 high.
If the bulls fail to protect the $101,400 zone, the price could start a major decline. In the stated case, the price could test the $98,500 support. Any more losses might call for the test of the $95,700 support. It is close to the 1.236 Fib extension level of the upward move from the $98,579 swing low to the $110,700 high.
Overall, Bitcoin is showing positive signs above the $106,400 level and the 50-day simple moving average (blue). A convincing close above the $108,800 level could initiate a strong surge and the price could rally to $115,000.
