Bitcoin's Struggle: Recovery Falters Amidst Weak Buyer Momentum
Bitcoin's recent attempt to reclaim higher ground has stumbled, with the cryptocurrency failing to decisively breach the $107,000 mark. This signals a potential exhaustion of buyer interest, leading to trimmed gains and a looming threat of further downside movement if the price dips below $102,500. The current market sentiment suggests a cautious outlook as key technical indicators point towards sustained bearish pressure.
Price Action and Key Resistance Levels
After a brief recovery wave pushed Bitcoin above $105,000, the bulls struggled to maintain momentum, encountering significant resistance around the $107,000 zone. A high was briefly touched at $107,400 before the price initiated a fresh decline, falling below critical levels at $105,500 and $105,000. Notably, the price dipped beneath the 50% Fibonacci retracement level of its recent upward move and broke below a crucial bullish trend line that offered support at $104,200 on the hourly chart. Currently, Bitcoin trades below both $105,000 and the 100 hourly Simple Moving Average, underscoring its weakening position. Immediate recovery efforts might face resistance at $104,000, $104,750, and $105,500. A clear break above $105,500 is essential to reignite bullish sentiment, potentially targeting $107,000, followed by $107,500, with stronger barriers at $108,800 and $109,500.
Downside Risks and Critical Support Zones
The failure to sustain a rally above the $105,000 resistance zone could trigger another wave of declines for Bitcoin. Immediate support for the BTC/USD pair is identified near $102,800. A more significant support level lies around $102,400, which also coincides with the 61.8% Fibonacci retracement level of the upward move from the $99,222 swing low to the $107,400 high. Should these levels fail to hold, the price could slide towards the $101,200 zone. Extended losses might see Bitcoin testing the $100,200 support, with the ultimate major support standing firmly at $100,000. Technical indicators reinforce this cautious outlook, with the hourly MACD gaining pace in the bearish zone and the Relative Strength Index (RSI) for BTC/USD positioned below the 50 level, indicating a lack of buying strength.
