Bitcoin's Precarious Position: Will the $110K Slip Lead to a Deeper Dive?

Bitcoin has recently seen a significant dip, falling below the crucial $112,500 mark and struggling to find recovery. The cryptocurrency's movement suggests a bearish trend, raising concerns among investors about potential further declines towards the $105,500 support level.

Current Market Dynamics

Bitcoin initiated a fresh decline after closing below the $113,500 level, quickly trading under the $112,000 support zone and its 100 hourly Simple Moving Average. The price tested the $108,750 zone, forming a low at $108,734 before attempting a modest recovery. Currently, Bitcoin is trading below $112,000 and the 100 hourly Simple Moving Average, facing immediate resistance near $110,750.

Navigating Resistance and Potential Upside

Despite climbing above $109,500, Bitcoin remains below the 23.6% Fib retracement level of its recent decline from a high of $117,354 to a low of $110,692. The first key resistance lies near $112,500, which also coincides with a significant bearish trend line on the hourly chart. A decisive move above $113,000 might signal a potential uptrend, possibly leading to tests of $114,500, $115,000, and a primary target of $116,500.

The Threat of a Deeper Decline

Conversely, a failure to breach the $112,000 resistance could precipitate a renewed downward slide. Key immediate support is identified at $108,500, with the first major support level at $107,200. Should these levels fail, the price could drop further towards $106,500, with the crucial $105,500 mark acting as a critical psychological and technical barrier. A sustained break below this level could accelerate Bitcoin's descent, potentially targeting the $103,500 major support.